# Love Your Kids But Fear For Their Finances?

> Spendthrift trusts protect children from inheritance risks without handing over money directly.
- Title: Love Your Kids But Fear For Their Finances? · Kiplinger
- Summary: Spendthrift trusts protect children from inheritance risks without handing over money directly. Parents can use spendthrift trusts to safeguard inheritances…
- Keywords: spendthrift trust, inheritance, children, parents, kiplinger, morning consult, great wealth transfer, trustee, financial security, estate planning, Love, Kids
- Source: Kiplinger — https://kiplinger.com/retirement/inheritance/love-your-kids-but-fear-for-their-finances-you-need-a-spendthrift-trust
- Published: 2026-10-07T10:30:00+00:00
- Read time: 1 min
- Topics: spendthrift trust, inheritance, children, parents, kiplinger, morning consult, great wealth transfer, trustee, financial security, estate planning
## Why Inheritance Worries Parents
Parents often worry children won't handle inheritances responsibly after they die.
## What a Spendthrift Trust Does
A spendthrift trust protects inheritance from poor decisions and creditors by rationing funds gradually.
## Why Outright Inheritance Risks Exist
Outright inheritances can disappear quickly and expose assets to creditors or mismanagement.
## Kiplinger-Morning Consult Survey
46% of parents expect meaningful inheritances versus 23% of children expecting to receive one.
## Who Needs a Spendthrift Trust
Children with financial immaturity, special needs, high-interest debt, or a history of poor money management benefit most.
## Trustee Selection Matters
Choosing a trustee with financial expertise ensures funds are distributed as intended without emotional bias.
## State Laws Vary
Spendthrift protections differ by state, with exceptions for child support, basic needs, federal debts, and tort claims.
## Trust Structure Examples
A $200,000 inheritance could be split with $2,000 monthly for one child and full access for another.
## Potential Conflicts
33% of adult children expect inheritance disputes with siblings due to differing expectations.
## When to Use a Spendthrift Trust
Spendthrift trusts work best for financially immature children or those at risk of creditor claims.
## What Happens Next
Parents should discuss financial plans early to prevent inheritance conflicts and ensure long-term security.
## Key takeaway

Parents can use spendthrift trusts to safeguard inheritances from poor financial decisions or creditors.