Making Inheritance The Incentive

Putting conditions on inheritances can offer incentives to heirs 

With great wealth comes great responsibility. On the other hand, great wealth can also mean great fun. When those minds are young ones it can be easy to miss the responsibility part until it is too late, if ever. If you are leaving behind an inheritance for the good of your young loved ones, then ensure that the inheritance will be a blessing and not a curse. So, how can you ensure that they'll learn to work and do the right things? With careful planning you can make the inheritance itself provide the incentive to engage in good behaviors.

Incentivized inheritances offer you the chance to give the gift of possibilities and a secure future. Properly planned, such an inheritance can make your heirs pause to respect the inheritance and take responsibility for it. The Chicago Tribune looked into the topic in a recent article titled "Making sure your kids are trustworthy."

Basically, to incentivize an inheritance is to build certain conditions into it. Ideally these conditions offer an heir a chance to grow and take responsibility. Want the inheritance? First, finish college, or go volunteer, wait until you're a certain age, or just uphold shared values in your life. These are the kinds of conditions you could set for an inheritance and ask your heirs to work for them. This can be done with a will, however, for greater effect consider a trust. Specifically, many find an "incentive trust" or the more hands-on "principle trust" to be a powerful tool.

If you're going to ask your heirs to think, then you're going to have to expect the same of yourself. Incentive plans take a careful hand and a special awareness of your heirs, their motives and their possibilities. You don't want to accidentally disinherit or dis-incentivize, for example. Finally, when it comes to actually putting the words to paper it takes some careful drafting to get it right and think of all the options. If you want your heirs to learn and grow, then it is worth the time and treasure to work with competent counsel and with your loved ones directly to build the best plan.

For more information about estate planning, please visit our website.

Reference: The Chicago Tribune (May 8, 2014) "Making sure your kids are trustworthy"

No Comments

Leave a comment
Comment Information

Upcoming Workshops

3 Easy Steps To Protect Your "Stuff" This workshop addresses frequently asked questions and common misconceptions on Wills & Trusts, Asset Protection, Nursing Home Issues, and Medicaid Qualification.

Join Now! More Workshops

Call Us Today To Schedule A Consultation

We are ready to help you start planning. To schedule an initial consultation, call us at 770-822-2723 or 866-735-9628. You may also contact us online.

ESTATE PLANNING LAW GROUP OF GEORGIA,

Johns Creek Office
11555 Medlock Bridge Road, Suite 100
Johns Creek, GA 30097

Toll Free: 866-735-9628
Phone: 770-822-2723
Fax: 770-573-3379
Map & Directions

Lawrenceville Office
1755 North Brown Road, Suite 200
Lawrenceville, GA 30043

Toll Free: 866-735-9628
Phone: 770-822-2723
Fax: 770-573-3379
Map & Directions

map

How can we help you?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close