Leaving assets directly to a child gives them control of their inheritance once they reach the age specified in your will. However, this may not always provide the level of protection you want.
A trust can allow appointed trustees to manage the inheritance and control when or how it is distributed. This may be appropriate when a beneficiary is young, financially inexperienced, vulnerable or likely to require ongoing support.
Trust planning may also offer some protection where you are concerned about divorce, bankruptcy, financial pressure or assets passing outside the family following a beneficiary’s death or remarriage. The protection available will depend on the type of trust, its terms and how it is administered.
Trusts can involve tax, reporting and administrative responsibilities, so they should be created for a clear purpose and professionally drafted. The aim is to balance protection with sufficient flexibility for your children’s future needs.