An irrevocable children’s trust’s (ICT) advantage is that it can reduce your income tax and give you some lawsuit protection. The children’s trust assets cannot be claimed by your creditors, unless you fraudulently transfer your assets to the trust. Nor will these assets be included in your taxable estate. Moreover, the trust income is taxed at your children’s lower tax rates. While the trust is in effect and until the beneficiary reaches 21, neither the grantor nor the child’s creditors can claim the trust assets. But one disadvantage with the children’s trust is that when your child turns 21, the child can claim the trust assets. The trust is also irrevocable; therefore you can’t prevent your child from claiming the trust assets. For these reasons you must carefully consider whether your child or children can properly and responsibly handle trust assets at age 21. You no more want to lose trust assets to an irresponsible 21-year-old than to a lawsuit.