If you’re like a lot of people in the San Diego area, then you’re concerned about what will come of your assets when you’re gone. Sure, you’re probably excited about the prospect of leaving financial resources for your loved ones to enjoy, taking comfort in the fact that they’ll have as much support as you can provide them. But you might also have that nagging feeling that the estate that you worked so hard to build will be squandered away and actually serve as a detriment to your loved ones.
Utilizing an incentive trust
In these circumstances, an incentive trust may prove beneficial. These estate planning vehicles allow you to leave assets to a loved one, but in a very controlled fashion that motivates the beneficiary to act in a certain way. In practice, this means that the beneficiary will receive limited distributions from the trust and will only receive the full amount of the trust once a triggering event occurs.
These events can be wide-ranging. For example, you may condition release of trust assets upon the beneficiary’s graduation from college or marriage. You might even require that he or she hold a job for a specified period of time before assets will be released. Requiring substance abuse or gambling addiction treatment can also be a condition you place upon the release of trust assets. You have a lot of room to work with here, which allows you to be as creative as you need to be to achieve the outcome you desire.
Build an estate plan that is right for you
To a lot of people, estate planning seems like a daunting endeavor. But it doesn’t have to be. Instead, you can work closely with a skilled legal professional who can give you a holistic picture of your estate planning options and guide you through the process so that you know exactly what you want and how to obtain it. If that sounds appealing to you, then now may be the time to reach out to an estate planning legal professional of your choosing.