Putting money in trusts for kids

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Can anyone please help me understand how trusts work

My DH would like to set up trusts for our children to ring fence money for them should anything happen to him or I or both of us. His theory being that should he die and I remarry then our children have inheritance etc. I agree with the idea in principle. Any risk factors I should be aware of? What would happen if we divorced? I've got no reason to think we would but would like to understand implications if so.
He's more financially savvy than me so trying to get my head around it all.

No need to do this unless you’re at risk of hitting thr IHT threshold. The money will legally belong to them, and once in a trust you ca t get it back. You and your husband can be trustees so permit withdrawals. They can also be expensive to set up so needs to be a meaningful amount to make it worthwhile.

Risks - immediate one, if he dies will you have enough money to house, feed & clothe your children?

You need to talk to a proper financial planner/advisor. If you DH isn’t keen then go see one on your own. Never agree to a financial decision you don’t fully understand and I know there are some really knowledgeable posters on here but please don’t make such an important decision having only consulted internet randoms. If you’re in a position where this might make sense, essentially because you’ve got so much money that you can put a significant chunk away for the kids and know you won’t ever need it and that each of you would still be comfortable in the event of divorce or death, then you should only be taking advice from a regulated professional.

A better plan would be to make wills. He could, for example, leave you a life interest in some of his estate with it then passing to your children on your death. That would ensure they would inherit. You need to talk to a good will writer or a solicitor.

You can set up savings accounts for them in their names. We made investments for our DC early in their lives which have now grown to considerable nest eggs. The other easy alternative is to have an investment portfolio for them. If needs professional advice to set up and it will never be your money after it’s invested but you decide when they get it. A trust fund might never give them anything other than an income. Depends how it’s organised. If it’s a small fund, that may not be much. If it’s £million, then not so bad.

trust funds are expensive to set up & can be v inflexible. If you've got £1million+ per child it might be worth it but otherwise it is probably not.

Have you got wills? First, talk to a good lawyer about making wills & go through all the options carefully. if you get the will right (e.g. life interest in property), that might resolve 90% of the issues.

A will only gives money on death. Trusts and investments pay out earlier on a date chosen by you. Obviously make wills but getting something set up first works best for money for children.

Speak to a solicitor, trusts are complicated but can be useful for inheritance tax planning and other control issues. There are different types so it’s best to get proper advice.