Can A Trust Help Me Protect My Children’s Inheritance?

As estate planning attorneys serving families in Gloucester, Rockport, Manchester by the Sea, Beverly, and throughout the North Shore of Massachusetts, we’re often asked whether a trust is the right way to protect a child’s inheritance. The short answer is yes—when drafted properly, a trust can offer security, control, and flexibility that a simple will cannot. For parents who want to make sure their children are financially secure after they pass away, a trust is one of the most effective tools available under Massachusetts law.

Massachusetts families are often surprised to learn that passing assets outright to children can create serious risks. Creditors, divorce, financial mismanagement, and even substance abuse issues can put inherited money at risk. If a child receives their inheritance in a lump sum, there’s little control over how it’s used. A trust allows you to create guardrails—so your assets are used for meaningful purposes and are protected from outside threats. We create trusts that reflect your values and protect what you’ve worked hard to build.

How A Trust Protects Inheritance Under Massachusetts Law

Under Massachusetts General Laws Chapter 203E, which adopts the Uniform Trust Code, individuals have the ability to create both revocable and irrevocable trusts to manage and protect assets. A trust lets you decide how and when your children receive their inheritance. You can delay distributions until they reach a certain age or require that funds be used only for education, health, or housing.

discretionary trust gives your trustee the ability to decide when and how funds are distributed, which offers flexibility in managing the inheritance based on the child’s needs and maturity. A spendthrift clause, authorized under M.G.L. c.203E, § 502, can be included to prevent creditors—or even the child themselves—from accessing or misusing the assets before they are distributed.

If you’re worried about a child’s marriage ending in divorce, a properly drafted trust can help keep the inheritance separate from marital property. That means it’s much less likely to be divided in a divorce proceeding. The trust remains in your child’s name and under the control of a trustee, not part of the marital estate.

Avoiding Probate And Keeping Things Private

Another key benefit of using a trust is avoiding probate. Probate is a court-supervised process that can delay the distribution of assets, expose your estate to public scrutiny, and cost your heirs time and money. A funded trust bypasses the probate process entirely. That means your children will have faster access to funds when they need them most—without going through the courts.

In many cases, we use revocable living trusts to hold assets during your lifetime and convert to irrevocable trusts at your death. These trusts can continue to hold your children’s inheritance and distribute it over time, based on the terms you set. This provides long-term control and helps prevent impulsive decisions.

Tailoring A Trust To Each Child’s Needs

Every child is different. Some are financially savvy and responsible. Others may be dealing with challenges like addiction, poor money habits, or health issues. A trust allows you to tailor the plan to each child individually. You can leave more flexible terms for one child and impose stricter limits for another.

We also help families create special needs trusts under M.G.L. c.203E, § 408, for children with disabilities who receive government benefits. These trusts allow the child to inherit without losing access to programs like Medicaid or Supplemental Security Income.

Making Sure The Right Person Manages The Trust

Choosing the right trustee is just as important as writing the trust itself. You can name a trusted family member, a friend, or a professional fiduciary. The trustee must follow the instructions laid out in the trust and act in the best interests of the beneficiaries. Massachusetts law allows for trustee oversight, accounting, and even court intervention if necessary.

Trusts are flexible, legal tools that allow you to care for your children even after you’re gone. Whether you’re just starting your estate plan or reviewing an old one, making sure your children’s inheritance is protected should be a top priority.


Frequently Asked Questions

What Is The Main Benefit Of Using A Trust To Leave An Inheritance?
A trust allows you to control how and when your children receive their inheritance. It protects the assets from creditors, lawsuits, divorce, and poor financial decisions while also offering tax planning opportunities.

Can A Trust Protect My Child’s Inheritance From Divorce?
Yes. If properly drafted, a trust can keep the inheritance separate from marital property. This makes it more difficult for a former spouse to claim a share during divorce proceedings.

What If My Child Has Debt Or Creditors?
A spendthrift trust can prevent creditors from reaching the assets held in trust before distribution. This protection is allowed under Massachusetts law and can be an important safeguard.

Is A Will Enough To Protect My Children’s Inheritance?
No. A will directs who receives your assets, but it doesn’t control how the assets are used after they’re distributed. A trust offers long-term control and protection that a will alone cannot provide.

What Happens If I Die Without A Trust In Place?
Without a trust, your assets will pass through probate and be distributed outright to your children based on your will—or by intestacy laws if there is no will. This can lead to delays, public records, and lack of protection.

Can I Set Different Terms For Each Child In The Same Trust?
Yes. You can set individual subtrusts or provisions tailored to each child’s age, needs, or maturity level. This gives you flexibility while keeping the overall estate plan cohesive.

Can My Children Serve As Trustees Of Their Own Inheritance?
You can name your child as trustee, but that may reduce asset protection in some cases. A third-party trustee offers greater legal protection and accountability, especially if divorce or creditor issues are a concern.

Are Trusts Public In Massachusetts?
No. Unlike probate proceedings, trusts are private. The terms of the trust and its assets remain confidential, which can protect your family’s financial details from public disclosure.

What If One Of My Children Has Special Needs?
You can create a special needs trust to ensure your child receives their inheritance without losing access to government benefits. This requires careful drafting to meet legal requirements.

How Do I Know Which Type Of Trust Is Right For My Family?
It depends on your goals, your children’s needs, and the nature of your assets. A consultation with an experienced estate planning attorney can help you select the right trust structure and build a plan tailored to your family.


Call The Sullivan Firm P.C. Today For a Free Consultation

At The Sullivan Firm P.C., we understand how important it is to protect your children’s financial future. A trust can help you pass on your assets securely, privately, and with long-term control. We work with families across Gloucester, Rockport, Manchester by the Sea, Beverly, and throughout the North Shore to develop thoughtful estate plans that reflect their values and protect their children from risk.

Our law office is located in Gloucester, Massachusetts, and we proudly serve clients throughout Essex County. Let’s talk about the best way to protect your children’s inheritance—now and for years to come.