• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 4. Estate Planning > Incentive Trusts

Incentive Trusts

It certainly is true that you can’t take it with you. But with an Incentive Trust you can have a continuing influence on the people to whom you leave your assets even after you are gone. A recent trend in estate planning involves the use of an Incentive Trust, which is a type of trust that distributes your assets after your death upon the fulfillment of conditions that you establish with the trust. In this way, the trust can be used to either reward and encourage actions or to discourage other actions. For example, you may wish to leave money to a beneficiary on the condition that he or she completes some particular level of education. Or you may wish to condition the payment of money from the trust on the successful completion of a drug or alcohol treatment program. The range of behavior or achievements that you can encourage or discourage by use of an Incentive Trust is practically limitless and, of course, can be tailored to your own particular family situation. The only limitation is the vague legal standard that the condition not violate “public policy.”

The choice of trustee for an Incentive Trust is particularly important because you want someone who is both familiar with the trust creator’s intentions and the people involved, yet independent enough of the beneficiaries so as not to be unduly subject to their influence.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint