When you examine your inheritance list, you may recognize the fact that you have some people who are in line for inheritances who have not yet reached their full potential.
How will a large inheritance impact your younger heirs? Having a trust fund that provides you with everything that you need financially from a young age may actually hinder your growth as a person because you have no particular financial motivations.
If you are a person of considerable means, you obviously have the ability to draw your own conclusions. There are some people who simply want to take care of their loved ones and make things easy for them, and they don’t care about providing any particular guidance.
Others hold a different perspective. If you want to make sure that a younger heir adheres to certain standards, you could create an incentive trust that includes stipulations that must be met before distributions are made.
It would be possible to require the beneficiary of the trust to work as a condition that must be met before receiving distributions. This work could even be as a volunteer for a charitable organization.
You could also include educational incentives as you are planning ahead for the benefit of a family member who has not yet completed his or her education.
Additionally, you could stipulate that benchmarks, such as lump sums or larger monthly distributions, be distributed when the beneficiary reaches certain age levels.
You can be very creative to ensure that everything goes according to your plan. The point is, you have options, and this is something to keep in mind when you are planning your estate.
