Trust Fund

Do you have to be wealthy to set up a trust fund for your kids?

Trust funds are not just for the ultra-wealthy — families at many income levels use them to pass assets directly to children while avoiding the time and cost of probate court. A revocable living trust lets you name your children as beneficiaries and set terms for when and how they receive assets, such as reaching a certain age or milestone. The federal estate tax exemption is currently $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Jul 13, 2026View source, meaning most families will not owe federal estate taxes at all — but probate and asset distribution challenges can affect anyone regardless of estate size. Setting up a trust is often more about control and simplicity than tax planning.