Much of the focus of estate planning is on ensuring that your loved ones are cared for when you’re gone. Despite how easy that may sound, it can be a challenging endeavor. This is especially true when you have very real concerns about how your estate will be used by your loved ones. You also might worry about how an inheritance will affect your loved one’s behavior. This is where an incentive trust can prove beneficial.
What is an incentive trust?
In short, an incentive trust is an estate planning vehicle whereby estate assets are paid out to a beneficiary in smaller increments over time with the remainder of the trust’s funds being disbursed upon the satisfaction of an identified condition. For example, you can specify that your grandson will only receive the trust’s funds after graduating college or getting married. You can even use this estate planning tool to motivate a loved one to seek out treatment for an addiction.
You have a lot of flexibility with this kind of trust. You can be as creative as you want to be, which might give you peace of mind knowing that you can still control your estate and impact the lives of your loved ones for some time to come.
Achieve your goals through sound estate planning
An incentive trust can be a great piece of your estate plan. But it’s just one of the many options available to you. You can customize your estate plan to suit your needs and ensure that your vision for your estate and your loved ones becomes a reality. That’s why we encourage you to continue to learn more about the estate planning tools that might be right for you, and to pursue those that you feel may benefit you the most.