Which type of trust is designed for young adult children to ensure the principal is maintained for a long period?

A spendthrift trust is specifically designed to protect the assets from being squandered by young adult beneficiaries, such as children. This type of trust limits the beneficiary's access to the funds, thereby ensuring that the principal remains intact for a longer duration. It often includes provisions that prevent the beneficiaries from accessing large sums of money at once, thereby encouraging more responsible money management and often protecting the trust's assets from creditors or dependent spouses.

In contrast, a minor trust typically refers to a trust established for the benefit of a minor child and often allows for distributions for their needs. A traditional trust does not have specific characteristics geared towards young adults and can vary widely in its purpose and structure. A children's trust is a more generic term that might not necessarily include the specific provisions aimed at protecting the principal for young adult beneficiaries. Thus, the spendthrift trust is the most suitable option when prioritizing the preservation of the principal for young adults.