One of my first bosses used to say the price of the sports car your child purchases is directly proportional to the size of his inheritance when he turns eighteen. This tried and true axiom has occurred to more and more parents and they are dealing with the situation in greater numbers. An article by Chris Taylor in the Financial Post reported here speaks to how more folks are utilizing testamentary trusts with delayed payouts.

There are numerous benefits to delaying an inheritance. Most obvious is that your children will make wiser and better financial decisions as they mature through their twenties and thirties. It is also important to note that assets held in trust are not subject to  judgment creditors nor are they subject to attack as marital property in a divorce. Funds can be provided to your child over a period of years to pay for college, buy a home or educate your grandchildren. A trust, however, is not a way to control your children’s lives from the grave. You cannot protect them from everything forever and, as  Mr. Taylor points out, a trust that lasts until the child is 65  is a bit much.