There’s a good chance that you have a will, especially if you have assets that you want to share once you have passed on. If you don’t have many assets or few family and friends to share them with, then you can get by with a simple will (i.e. maybe a page or two long saying who gets what). However, if you have young children–or grandchildren–a simple, boilerplate will probably won’t cut it. Furthermore, if you find that your will may end up leaving a large inheritance to a child or young adult, you will want to consider guidelines and limitations on how the money can be used and when it can be used. This is where a trust comes into play. Since there is a whole section of law devoted to trusts (usually combined with wills and estates), I am not going to get into the legal mumbo-jumbo of the different types of trusts and how they all work. In a nutshell, though, a trust is a legal vehicle that allows for the distribution of money or assets, as overseen by a trustee, to a beneficiary. The trustee may have certain guidelines and rules that he or she must follow when distributing the assets within the trust, which are defined by the settlor–the person who is looking to have his or her assets or money distributed. There are multiple types of trusts out there and each have different ways that they are created and can be used. Why am I talking about trusts? Well, if you have children (or grandchildren), particularly ones that are young, a trust can be an effective way to make sure that they don’t blow through any inheritance they receive. For example, you can instruct the trustee to not distribute the assets or money in the fund before the beneficiary reaches a certain age or that is can only be used for certain purposes. This can protect both the assets you place in the trust as well as the beneficiary and prevent the beneficiary from becoming to reliant on an inheritance. Despite the simplistic approach of this blog post, trusts can be complex. Thus, you will need to speak with an attorney, particularly one specializing in estates or trusts, if you decide you want to set one up as they can legally do so and will ensure that it is done properly.