There are a lot of ways to approach your estate planning. The strategy that you take is going to depend in large part on what you hope to get out of the process. If you want to support a charitable cause, you may want to use a charitable remainder trust. But what can you use if you want to motivate your loved ones to achieve certain goals in life?
The basics of an incentive trust
If you’re worried about how an inheritance will impact the way that your loved ones live, you may want to consider using an incentive trust. Here, you name a beneficiary to the trust who will receive periodic payouts, which will provide the beneficiary with a certain amount of financial stability.
However, the bulk of the trust’s assets will be kept away from the beneficiary until an identified triggering event is met. This is where you can motivate your loved ones to act in a certain way. For example, you may condition the release of trust assets on a grandchild’s graduation from college or a daughter’s marriage. You can even condition release of trust assets on the birth of a child, holding a job for a certain period of time, or completing substance abuse treatment.
Are you ready to put together the plan that you need?
If you want to maximize your estate plan, you might want to discuss your vision of the future with an attorney who is experienced in creating thorough estate plans. Hopefully, you can rest easy knowing that the plan that you have in place is sufficient to suit your needs, protect your assets and provide stability and support to your loved ones.