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Incentive trusts could offer motivation and peace of mind

As someone with a kind and giving nature, you may have always known that you would like to leave certain assets to your loved ones in the event of your passing. Of course, you likely also know that simply handing over money, valuable items or other property may not always be in the best interests of the intended recipients. As a result, you may find yourself wondering if you could somehow control the use of the bequeathed assets even after your death.

Luckily, creating trusts could help you maintain a certain amount of control even when you are no longer living. Trusts allow you to dictate terms regarding how and when beneficiaries may receive assets and how those individuals should use the assets. Because these terms are legally binding, the beneficiaries must adhere to the terms or forfeit their inheritances. Therefore, you may wish to consider the benefits of incentive trusts.

Motivation

If you have a loved one who often needs positive reinforcement in order to reach goals, you may set the terms of an incentive trust for such a purpose. For instance, you could dictate that the intended recipient must refrain from certain unproductive activities or encourage the individual to take steps toward a beneficial life change. In the event that the person meets these terms, he or she could receive the intended assets.

Age restrictions

Placing an age restriction on a trust can prove especially useful. You may have young children, grandchildren or loved ones who may not have otherwise reached an age of fiscal responsibility. Because you undoubtedly do not want to hand over money or expensive property, you could place the assets into a trust and indicate that the property should not go to the beneficiary until he or she has reached a certain age.

Additionally, you could place benchmark ages on the trust as well. This stipulation means that the beneficiary could receive certain assets when he or she reaches a particular age and then receive other assets after reaching another age.

Peace of mind

By creating incentive trusts, you may gain a peace of mind that your loved ones could obtain the intended assets while lessening the likelihood of complications arising from the receiving of those assets. Trusts act as versatile estate planning tools, and you may wish to find out more information on this option in order to determine what terms could suit your needs.

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