It is a good feeling to recognize the fact that you will be able to provide significant financial resources to your loved ones after you pass away. However, coming into a large sum of money when you are not fully developed as a human being is not always a good thing.
People who are in a position to bequeath life-changing amounts of money to their family members have had these concerns for generations. One solution is to make an heir the beneficiary of an incentive trust.
As the name would suggest, with these trusts you include stipulations that must be met before distributions from the trust will be made to the beneficiary. These stipulations are intended to provide incentives toward positive behavior and in some cases provide incentives to steer clear of self-destructive behavior.
There are no particular limitations regarding what you can stipulate as long as it is not something that is against the law. You know your family members and their individual proclivities, so if you use your imagination you should be able to devise trust terms that provide effective incentives and go forward with peace of mind as a result.
If you would like to explore this and other estate planning tools that can be utilized to transfer wealth to your loved ones take a moment to arrange for an informative consultation with a licensed and experienced Willoughby OH estate planning lawyer. Your attorney will evaluate your unique situation, become apprised of your concerns, and make the appropriate recommendations.
- Preparing for Coronavirus - March 31, 2020
- Beneficiary Designations and Other Non-Probate Transfers - February 24, 2020
- Estate Planning Conference DiscussesSECURE Act and More - February 17, 2020