Living Trusts vs. Testamentary Trusts: And When Should Your Kids Get Full Access?
When planning your estate, as a parent, one of the biggest decisions you’ll make is how and when your children will receive their inheritance. For many parents, this includes deciding between setting up a revocable living trust or a testamentary trust and figuring out the right age to allow full access.
So let’s break that down a bit.
What’s the Difference Between a Revocable Living Trust and a Testamentary Trust?
A revocable living trust is created while you're still alive and becomes effective immediately. It allows you to transfer assets into the trust during your lifetime and appoint a successor trustee to manage it after your passing. A major benefit? If set up properly, it avoids probate entirely, making things faster and more private for your loved ones.
On the other hand, a testamentary trust is created through your will and only takes effect after you pass away. Because it’s part of the will, it will go through probate—but it’s still a solid option for many families looking to provide long-term structure and control over their children’s inheritance.
So… When Should the Kids Get Access?
This is the question, and honestly, there’s no one-size-fits-all answer. Some parents think 18 is perfectly reasonable. Others feel more comfortable with 22 or even 25. We’ve seen parents stagger distributions over years—say, one portion at 21, another at 23, and the rest at 25.
What it really comes down to is you, your child, and your gut feeling.
We always tell our clients to think about:
Their child’s personality
Their level of maturity and responsibility
Whether they’ve shown the ability to manage money or if they’re still figuring it out
But what if your child is still too young to tell?
Here’s our favorite trick: Think about what you were like at that age. When we ask that question, usually we get a laugh, and then the age starts climbing.
Your Family. Your Values. Your Choice.
At the end of the day, this is about protecting your children and setting them up for long-term success, not just giving them a lump sum and hoping for the best. Whether you choose a living trust or a testamentary trust, your estate plan should reflect your values and your kids’ unique needs.
We’re here to help walk you through those decisions—no judgment, just good questions and maybe a few laughs along the way.
Want help customizing a trust plan that fits your family perfectly? Contact us today!
