The prefrontal cortex is the responsible part of your brain that makes decisions, controls your impulses, and thinks past this upcoming weekend. In most people, it doesn’t fully develop until 25. That’s why families make a trust stating that if they die while their child is a minor, everything is held in trust for their children’s health, education, and support until they turn 25.
Take me for example. When I was 17, I had no inheritance and certainly no such trust fund, but I did have $75,000 in settlement proceeds that had just come in from a car accident. The settlement was structured to pay for my college education, not paid to me outright, because I was a minor.
At the time, I was just a kid studying for the SATs but dreaming of wrangling horses in Wyoming. The only thing standing between me and my 17-year-old’s dream was the fact that I had $75k in a use it or lose it type deal for college. So I went to UNC Chapel Hill instead and joined the equestrian team, which seemed like the next best thing. I applied for wrangler summer jobs but never got them.
You probably saw this coming: the wrangler dream wore off. In fact, it wore off right around the time Sex and The City took hold, and my new 21-year-old’s dream became to move to New York City and trot around in fashionable clothing and high heels. Which is exactly what I did; I got to New York City with $4000 from selling my college car, and around 27, after my prefrontal cortex had had some time to ripen, I decided to come back to Chicago for Law School.
I am so glad that $75k paid for college; if it hadn’t, you wouldn’t be reading this, and I would be struggling with emphysema from all the Marlboro Reds.
The point is, if someone had handed you real money at 18, where would you be?
That’s the whole point of holding money in trust until 25. Not to be controlling. Not because your kid isn’t smart. But because the brain that’s going to steward your legacy isn’t fully online yet. The trust buys them time. Time for their wrangler dream to wear off, time to realize Sex and the City is totally unrealistic, and for the prefrontal cortex to finally do its job.
Here’s what I always make clients sit with, though: even 25 might be early. That 25-year-old is often still untangling the choices they made while their prefrontal cortex was under construction. There’s nothing stopping you from starting smaller at 25 or tying that first distribution to finishing school or holding a job. The trust should reflect what you actually know about your kid, not just what the calendar says.
We do estate planning on a flat fee with a four-week turnaround, and I’ll meet with you for a free one-hour Zoom before you spend a dime. Your kids’ future selves will thank you. The horses will understand.
A strong legal plan protects more than assets. It protects the people you care about most. Bielski Chapman, Ltd. helps individuals, couples and families across Chicago create thoughtful strategies that reduce risk, prevent conflict, and build long-term security. Schedule your consultation today.
