The Benefits of an Incentive Trust

9:50 pm California Trusts, Estate Planning

carrot and stick 150x150 The Benefits of an Incentive TrustRecent research about inheritance trends reveals that many wealthy Americans are leery of passing along assets to children with no strings attached.  Some feel that they would be taking away a child’s incentive to work, while others fear encouraging profligate behavior.

This is where an incentive trust can benefit both the settlor and the beneficiary.

An incentive trust allows you to pass along wealth in the ways you wish by allowing you to define the circumstances under which those assets will be distributed.  For example, if you want to pass on wealth to children or grandchildren but wish to stipulate they receive a college education prior to receiving assets, you can do so through an incentive trust.

You may also define the circumstances under which a child or grandchild can receive the assets.  If you want some of your wealth to be used to help heirs start a business, you can specify that in an incentive trust.

You can also use an incentive trust to distribute assets tied to philanthropic endeavors if those are values you wish to pass along.  Receiving assets through an incentive trust can be contingent upon anything – even marrying or having children.

We can help you devise the gifting plan that is right for your family. Our estate-planning experts in our California law firm are ready to meet your needs today.  Give us a call to get started.

Help is available to you by contacting your Southern California financial planning experts today.

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