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How Do I Set Up a Trust for My Kids in Texas? (2025)

If you’re a parent, you’ve probably asked yourself at some point: “What happens to my kids if something happens to me?” And while naming a guardian is step one, protecting their future financially is just as important.

That’s where a trust comes in.

Setting up a trust for your children can ensure they get the support they need—without court delays, drama, or a windfall at 18. Here’s how it works, why it matters, and how to get started.

What Is a Trust for Children?

A trust is a legal arrangement where one person (the trustee) manages assets for someone else (the beneficiary). In this case, you’re setting up a trust to manage money, property, or other assets for your children until they’re old enough—or mature enough—to handle it themselves.

The big benefit? It gives you control over how and when your kids receive what you leave behind.

Why Not Just Leave It in a Will?

A will is a good start—but it doesn’t keep assets out of probate, and it doesn’t let you delay or structure distributions.

If you leave $200,000 to your 16-year-old in a will, they’ll likely get a check on their 18th birthday. No one wants to imagine that money going straight toward a sports car or an online shopping spree.

A trust, on the other hand, lets you say:

• “Use the money for college or medical needs.”

• “Give them half at 25, the rest at 30.”

• “Keep it in a trust until they show financial responsibility.”

Types of Trusts for Kids

1. Revocable Living Trust

• You stay in control while you’re alive

• Can include your kids as beneficiaries

• Becomes irrevocable after you pass away

2. Testamentary Trust

• Created through your will

• Doesn’t take effect until your death

• Subject to probate before funding

3. Irrevocable Trust for Minors

• Often used for tax planning or gifts

• Assets are no longer under your control

• Can be structured for education, disability, or other specific needs

Step-by-Step: How to Set Up a Trust for Your Children in Texas

Step 1: Identify Your Goals

Think about:

• How much money or property you’re leaving

• Whether the trust should cover education, housing, or long-term support

• What ages or milestones you want to trigger distributions

Step 2: Choose a Trustee

This is someone you trust to manage the assets responsibly. You can name:

• A family member

• A trusted friend

• A professional trustee (like a bank or attorney)

Step 3: Draft the Trust Document

Work with an estate planning attorney to create a document that:

• Names your beneficiaries (your kids)

• Appoints a trustee and successor trustees

• Defines how funds should be managed and distributed

Step 4: Fund the Trust

A trust is just a piece of paper until you fund it. That means:

• Retitling bank accounts or property in the name of the trust

• Naming the trust as a beneficiary of life insurance or retirement accounts

Step 5: Coordinate with Your Will

Make sure your will doesn’t conflict with your trust—especially if you have a testamentary trust or guardianship provisions.

Real-Life Example: Future-Proofing the Inheritance

Jacob and Alicia have three young kids and a house in Sugar Land. They set up a living trust naming the kids as equal beneficiaries, with Alicia’s sister as trustee. They left instructions that:

• The trustee can use trust funds for school expenses or health needs

• Each child gets one-third of their share at 25, 30, and 35

• If a child struggles with addiction or legal issues, distributions can be paused

This way, their children are protected, but not handed a fortune with no guardrails.

What About Taxes or Medicaid Planning?

Some parents want trusts to protect assets from taxes or long-term care costs. In that case, a special needs trust or irrevocable trust may be appropriate.

Talk to your attorney about whether tax planning or government benefits are part of your goals. Texas doesn’t have a state estate tax, but federal thresholds still apply.

How The Lange Firm Can Help

At The Lange Firm, we help Texas parents:

• Set up custom revocable or irrevocable trusts

• Draft clear, enforceable language that protects your kids

• Choose trustees and plan for contingencies

• Avoid probate and court interference

Whether your kids are toddlers or in college, it’s never too early to start planning. We’ll walk you through every step.

Final Takeaway

A trust is more than a financial tool—it’s a plan for your children’s future. It gives you peace of mind and gives your kids structure, support, and a safety net.

Contact The Lange Firm today to start building a trust that protects what matters most: your family.