What Is the Best Way to Leave Your Estate to Your Children?

When you’re planning how to leave your estate to your children, the biggest goal for most parents is straightforward: make it easy, make it fair, and make sure your kids are protected.

The truth is, there’s no single “best” way that fits every family. Estate planning isn’t a one-size-fits-all method; it’s designed to be personalized. But there are a few proven approaches that tend to work well depending on your children’s ages, financial skills, health, and life circumstances.

The three most common options are:

• A simple will,

• A revocable living trust, and

• Beneficiary designations on accounts, such as life insurance and retirement plans.

Each method has its own benefits—and limitations—and understanding these differences helps you make a plan that actually accomplishes what you intend.

Let’s break down how each option works, why a parent might choose it, and how to avoid the most common mistakes when leaving an inheritance to your children.

The Fastest and Simplest Option: Leaving Assets by Will

A will allows you to name who gets what after you pass. It’s straightforward and works well if:

• Your estate is simple,

• Your children are responsible adults, and

• You’re comfortable with assets going through probate.

How it works:

Your will goes through the probate process. A personal representative gathers your assets, pays debts, and distributes what’s left to your children exactly as you instructed.

The good:

• Easy to create

• Clearly states your wishes

• Works well for uncomplicated families

The limitations:

A will does not avoid probate, which is a downside for many families since probate is lengthy, expensive, and leaves your information public. It’s normal for it to take months, or even over a year, before your family can access your assets. If your children are minors, disabled, or not great with money, a simple will may also leave them vulnerable because the inheritance becomes available all at once without protections.

The Most Flexible and Protective Option: A Revocable Living Trust

For many families, a revocable living trust is the most effective way to leave an estate to children—especially if you want to keep things smooth and private.

What it does:

• Avoids probate entirely

• Allows assets to transfer immediately

• Lets you set rules for how and when your children receive distributions

• Protects minors, quick spenders, or vulnerable beneficiaries

Why parents choose it:

A trust lets you stay in control during your lifetime, then allows your successor trustee to manage the inheritance exactly the way you’ve written it. You can:

• Delay payouts until a child reaches a certain age

• Stagger distributions over time

• Hold funds in trust for a child’s entire lifetime if needed

• Protect assets from creditors or lawsuits

Example:

If you want your children to receive some funds at 25, more at 30, and the rest at 35, a trust can do that.A will cannot.

This level of flexibility is unmatched in estate planning. 

Leaving Assets Through Beneficiary Designations

Some assets transfer automatically when you name a beneficiary. These usually include:

• Life insurance

• 401(k)s and IRAs

• Brokerage or bank accounts with POD (Payable on Death) or TOD (Transfer on Death) designations

Why this matters:

These assets bypass probate, meaning your children receive them quickly and directly. POD accounts are typically used for bank accounts, while TOD accounts are used for investment or brokerage accounts. When you pass away, the named beneficiary receives the funds directly after the institution sees a death certificate—no court involvement needed.

Important considerations:

Leaving large sums directly to minors or financially inexperienced children can cause problems. If a child is under 18, a court-appointed guardian may need to oversee the funds. Even if the child is an adult, the inheritance could disappear quickly if they’re not financially responsible.

Tips for using POD/TOD accounts effectively:

• Keep beneficiary designations up to date after life events like marriage, divorce, or births.

• Double-check names and details to avoid delays or disputes.

• Consider naming a trust as the beneficiary if you want to provide protections or stagger distributions for minors or children who need guidance.

• Coordinate POD/TOD accounts with your will or trust so everything aligns with your overall estate plan.

Using beneficiary designations thoughtfully can make inheritance fast, direct, and stress-free, while still giving you control over how your children receive the funds.

Choosing Equal vs. Unequal Inheritances

Many parents naturally assume their estate should be divided equally among their children, but sometimes an unequal inheritance makes more sense. For example, one child may have spent years caring for you or a family member and deserves extra support. Another child may have significant special needs and require financial resources for lifelong care. In other cases, one child may already be financially secure while another struggles to make ends meet, or perhaps you’ve previously gifted a substantial amount to one child but not the others.

If you decide on an unequal distribution, we recommend that you clearly document your reasoning. A private letter or note explaining your decision can help prevent misunderstandings and reduce the likelihood of familial conflict later. This helps your children understand that the distribution shows fairness, not favoritism.

Guardianships and Protection for Minors

If your children are under 18, leaving assets directly to them can create bigger problems than you could anticipate. You could be thinking it’s the most straightforward way to leave your assets to your children so they don’t get other people’s hands on them, which is common. In most cases, the court must step in to manage the inheritance, and the child could gain full control at 18, whether or not they are ready to handle it.

To address this, parents often combine a trust with a legal guardianship. A guardian is a court-appointed adult responsible for the child’s personal care and well-being, while a trustee manages the financial assets according to your instructions.

Using a trust allows you to hold and manage the inheritance until the child reaches an age or milestone you deem appropriate. Selecting a responsible trustee (someone you trust to follow your wishes and act in your child’s best interest) is essential.

You can also set distribution schedules tied to specific ages or life events, ensuring the inheritance provides ongoing support rather than overwhelming a young or inexperienced child.

By pairing a guardianship with a trust, your estate plan protects your child’s daily needs and their financial future, preserves your intentions, and adds structure and stability that a simple direct transfer cannot provide.

What Happens If You Do Nothing?

If you die without planning, Florida’s courts decide everything. Your children may inherit, but:

• The process is slower

• Your specific wishes may not be honored (distribution-wise)

• Minor children will need court-appointed guardians over funds

• Your estate becomes public

• Family disagreements become more likely

So, What Is the Best Way?

As we’ve seen for most families, the most reliable and protective option is a revocable living trust, supported by carefully planned beneficiary designations. 

But every family is different, and the best method depends on a variety of factors, including your children’s ages, their financial responsibility, whether you want to avoid probate, how complex your assets are, and whether anyone requires lifetime support or legal protection.

What matters most is choosing a plan that reflects your values, protects your children’s futures, and makes the process as manageable as possible for them during an already emotional time.