I often meet with parents in New York who have a clear intention: they want their assets to benefit their children. But a simple will often falls short. Imagine a couple passes unexpectedly, leaving their Brooklyn brownstone and a significant investment portfolio to their 15-year-old son. Without a trust, the son cannot legally own the property. Instead, the Surrogate’s Court will appoint a guardian to manage the assets—a process that is public, can be expensive, and cedes control to the court system until the child turns 18.
At 18, that child receives the entire inheritance outright. We have seen it happen time and again: a teenager, unprepared for the responsibility, is handed a life-changing sum of money with no guidance, no structure, and no protection. This is not the legacy most parents envision. It is the opposite of stewardship.
The Trust as a Framework for Your Child’s Future
A trust is not just a legal document; it is a detailed instruction manual for the future. It allows you, the grantor, to dictate the terms under which your child will receive their inheritance. This is fundamentally about control and protection—control you exercise now for their protection later.
Unlike a will, which is a one-time transfer of assets upon death, a trust creates an ongoing relationship managed by a person or institution you choose—the trustee. This structure allows for a more deliberate and phased approach to inheritance. You can specify that funds be used for particular purposes, such as education, healthcare, or a down payment on a first home. You can also stagger distributions over time—for example, granting your child access to one-third of the principal at age 25, another third at 30, and the remainder at 35.
This approach gives a young adult the opportunity to mature and gain financial literacy before taking full control. It builds a runway for them to learn how to manage wealth responsibly, guided by the framework you established.
Choosing a Trustee: The Most Critical Decision
The single most important decision you will make when creating a trust for a child is selecting the trustee. This person or entity has a fiduciary duty to manage the trust’s assets prudently and in the sole interest of the beneficiary—your child. This is a demanding role that requires financial acumen, impartiality, and a deep understanding of your intentions.
Many parents initially want to name a close family member, like a sibling or their own parent. While this can work, it is a choice that carries risk. Can your brother, a wonderful uncle, also handle complex investment decisions and tax filings? Can he say “no” to your child if a requested distribution is unwise or outside the trust’s terms? Emotion and family dynamics can complicate the trustee’s duty of impartiality.
An alternative is a professional or corporate trustee, such as a bank’s trust department or an independent trust company. While they charge a fee, they bring professional management, regulatory oversight, and objectivity to the role. In some cases, the best approach is a hybrid—appointing a co-trustee structure with a family member for personal insight and a corporate trustee for financial administration. The right choice depends entirely on your family’s circumstances and the complexity of the assets involved.
Beyond a Simple UTMA Account
Some families are familiar with custodial accounts, like those established under the New York Uniform Transfers to Minors Act (UTMA). These accounts are simple to set up and can be an effective way to gift assets to a child. However, they lack the customization and long-term control of a trust.
Under EPTL §7-6.21, the custodian of a UTMA account must turn over all remaining assets to the child when they turn 21. There are no exceptions and no room for discretion. If the inheritance is substantial, you are back to the original problem: a young adult receiving a windfall with no strings attached. A trust, by contrast, can be structured to manage and distribute assets for a child’s entire lifetime, if that is your wish.
A trust is an act of deliberate, intentional planning. It ensures the resources you have worked to build become a source of opportunity for your children, not a burden.
The first step is not legal, but personal: think through the principles that will govern your child’s inheritance. Once you have a clear vision, our work is to design the legal structure that brings it to life. I invite you to schedule a preliminary meeting with our firm to discuss your family’s legacy goals.
