Figuring out the best way to leave your assets to your loved ones can be difficult to do. Sure, in some instances a simple will is enough to meet your needs, but if you’re concerned about how your beneficiaries will handle their inheritances or if you’re concerned that an inheritance will negatively impact their ability to live a fulfilling life, then you might want to consider your other estate planning options. One of the most effective that’s available to you is the incentive trust.
What is an incentive trust?
An incentive trust allows you to place conditions on the release of trust assets. In other words, to obtain their inheritance, your beneficiary will have to complete a goal that you’ve laid out for them. This goal can be just about anything you can think of so long as it’s legal, which gives you a lot of flexibility as far as motivating your loved one to act as you see fit.
For example, if you have a loved one who struggles with addition, then you can make completion of a substance abuse treatment program a condition that has to be met before trust assets will be released to them. Other conditions that you could place on one of these trusts are completing a financial literacy course, holding a full-time job for a specified period of time, graduating college, getting married or having a child. You can be as creative as you want to be here.
Develop the estate plan that meets your needs and protects your goals
We understand that you might have a number of concerns as you navigate the estate planning process. While that can be stressful, take comfort knowing that one of the benefits of the estate planning process is that you can custom tailor it to suit your needs. So, if you want to learn more about how you can modify your approach to estate planning so that you’re better positioned to reach your goals, then please continue to read our blog and the rest of our website.