I'm setting up a will in the near future and trying to decide if a trust is the right way to go. I'm in my thirties, married, and have two small children. Our assets consist of our home (mortgaged), 401(k)'s, IRA's, some mutual funds, and shares in a privately-held start-up.
My father and father-in-law have both told me that a trust is the best way to pass wealth on to your children. However, my friend who is an attorney, and does this sort of thing for a living, told me that attorneys will often suggest this to their clients because it is lucrative for their practice, and that in many cases it's often not the right decision.
What do you think? I've read this question already, and it was very helpful. However, I'm still not sure how the specifics apply to my situation. I'm happy to consult a tax attorney, I just want to make sure that I have the facts before getting started.
P.S. I live in the United States (California), in case this has any impact on the answer.