Most people think that they can get by with a simple estate plan. After all, they may just want to pass down their assets in a way that is fair and equal. But, as life changes, so, too, should your estate plan. If you fail to periodically revisit your estate plan and modify it as needed, then your assets could end up falling into the wrong hands or your hard-earned wealth could be squandered away.
Are there estate planning options for you to protect your wealth?
Fortunately, the answer here is “yes.” One way that you can protect your estate and your loved ones is to utilize an incentive trust. These trusts allow you to provide your loved ones with enough financial support to get by through periodic payments, with the bulk of the assets being paid only once a specified condition is met. This allows you to protect your wealth while motivating your loved one to act in a certain way. In other words, it ensures that you retain some control even long after you’re gone.
What conditions can you place on an incentive trust?
You have a lot of latitude when it comes to implementing conditions on an incentive trust. For example, if you’re worried about your loved one squandering away your wealth, then you can require him or her to work full-time for a specified period of time before the bulk of the trust’s assets will be released. Hopefully by that time your loved one will have obtained some financial stability of their own and know how to better manage money.
There are other conditions that you can utilize, too. You may require that your loved one graduate college or get married, and you can even require that he or she have a child or complete a substance abuse treatment program before trust assets will be released. In other words, you can be creative here to ensure that you’re controlling your wealth and how your loved ones act far into the future. This can be beneficial to both your estate and your loved ones’ wellbeing.
What changed conditions may warrant the implementation of an incentive trust?
Although an incentive trust may be a wise option for you from the get-go of your estate planning, many people turn to them when life changes occur. For example, a child’s battle with addiction may require more careful consideration of how assets are left to him or her. The same holds true when you have a falling out with a loved one due to their certain actions or inactions. In these instances, you’ll want to revisit your estate plan to determine if an incentive trust is an option that can suit your needs and protects your wealth.
Competently navigate your estate planning challenges
Although estate planning may seem easy on its face, changing family dynamics can certainly make the process trickier. That’s why it’s wise to not only revisit your estate plan from time-to-time but also to educate yourself as to the estate planning vehicles at your disposal. Fortunately, you don’t have to try to figure out the estate planning decisions that are right for you on your own. Instead, you can collaborate with an estate planning attorney who is knowledgeable in this area of the law. Perhaps then you can create the estate plan that is right for you and your family, and you can rest assured that your wealth is in good hands.