Money is a true motivator, but how do you draft a will leaving inheritances that still encourages your children to work hard? This is becoming more and more of a concern as the baby-boomer generation is set to pass on $59 trillion, the biggest wealth transfer ever. The top American tycoons suggest cutting your children out all together because large sums of money works more for injury than good. Striking a balance between spending and saving is undoubtedly difficult when a massive inheritance comes your way. One economists argues that varying the level of inheritance to each child by creating incentive trusts is beneficial for forcing them to take your wishes seriously. These trusts include clauses that encourage educational success, hard work, and good behavior. Whatever the strategy, the upcoming years will stress the need for incentivizing inheritances.
See Richard Davies, How to Make Inheritance an Incentive, 1843 Magazine, October 13, 2016.
