Q: Once my children turn 18, do they really still need trust protection, or can assets just be left to them outright?
A: This is a common question parents ask when they begin thinking about estate planning for their adult children. Many parents initially assume that once a child turns 18, assets can simply be left to them outright. After all, they are legally adults, and a direct inheritance can feel straightforward and uncomplicated.
As the discussion continues, however, many parents are surprised to learn how much risk can come with leaving assets outright. Property or money inherited directly by an adult child becomes fully titled in that child’s name and is therefore exposed to life events that are impossible to predict. These risks can include divorce, creditor claims, lawsuits, business failures, or personal relationships that do not turn out as expected. Even responsible, financially savvy children can encounter circumstances that place inherited assets at risk.
Trust planning for adult children is not about mistrust or unnecessary control. Rather, it is about protection and flexibility. A properly drafted trust allows a child to benefit from inherited assets while helping to shield those assets from outside claims. This can be particularly important in states like New York, where divorce and creditor issues are a common reality. In many cases, assets held in trust receive significantly greater protection than assets owned outright.
Timing is another important consideration that parents often overlook. Receiving a substantial inheritance at a young age can be overwhelming, even for mature and capable individuals. A trust allows parents to structure distributions in a thoughtful way—providing access to funds for health, education, maintenance, and support, while avoiding the pressure or risk of a large lump-sum inheritance at an early age.
Importantly, trust planning does not mean children lose independence. In many estate plans, adult children are allowed to serve as trustee of their own trust, or as co-trustee alongside someone else they trust. This structure allows them to participate actively in managing investments and making financial decisions, while still preserving the protective benefits the trust provides.
Once these benefits are explained, many parents find that trust planning strikes the right balance. Children can benefit from their inheritance, participate in managing it, and still have protection in place for whatever life brings.
Estate planning is about more than simply transferring assets. It is about protecting your children from risks they may not yet see coming. While legal adulthood begins at 18, thoughtful planning often extends well beyond that milestone.
— Alma Muharemovic, Esq., and Michal Lipshitz, Esq.
Alma Muharemovic, Esq., is an Associate Attorney at Burner Prudenti Law, P.C., focusing her practice on Estate Planning.
Michal Lipshitz, Esq., is a Senior Associate Attorney at Burner Prudenti Law, P.C., focusing her practice on Estate Planning and Elder Law.
Burner Prudenti Law, P.C. serves clients from New York City to the East End of Long Island, with offices located in East Setauket, Westhampton Beach, Manhattan, and East Hampton.