This column discusses the role that Incentive Trusts can play in encouraging beneficiaries to exhibit good behavior. There are some critics who might argue that incentive trusts are a way for a decedent to act like a “helicopter parent” from beyond the grave. Supporters of these types of trust instruments (like the author of this column) argue that incentive trust can motivate beneficiaries to make good decisions with their inheritance. Incentive trusts can provide clients with the peace of mind knowing that their loved ones will not be able to squander the inheritance that they receive. When setting up an incentive trust it is important to seek out the assistance of a qualified estate planning attorney to make sure no mistakes are made in the creation of the trust instrument.
See Christopher Yugo, Incentive trusts vs. helicopter parenting, NWI Times, August 16, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
