A lot of people who engage in estate planning worry not only about the future of their loved ones, but also the viability of their estate. They find themselves concerned about the longevity of their assets and whether they’ll be used appropriately once they’re gone. At the same time, though, these individuals want to support their loved ones as fully as possible. So, then, the question becomes what sort of estate plan renders both goals attainable?
Is an incentive trust right for your circumstances?
If you’re in this situation, then an incentive trust might be a great option for you. This estate planning tool allows you to put assets into a trust which are then paid out periodically to a named beneficiary. Here, though, the bulk of the trust’s assets won’t be released until an identified condition is met. You can get creative in the conditions that you place on these trusts, which allows you to motivate those individuals in a number of ways.
For example, you can indicate in your estate planning documents that trust assets will only be released upon the beneficiary’s graduation from college or his or her marriage. You can have assets released when the beneficiary’s first child is born if you want to encourage family development, or upon the successful completion of financial planning classes or substance abuse treatment if you’re concerned about money being squandered away. You have a lot of options here.
Know your estate planning options
Estate planning is a customizable process meant to suit your needs. But in order to create the plan that is right for you, you have to know your options. That’s why it’s in your best interests to do everything you can to learn about the options at your disposal and how to maximize them to the fullest advantage.