Figuring out what to do with your estate can be stressful. After all, it’s not easy to think about your own mortality, and you might be worried about how your loved ones are going to manage your assets once you’re gone. But we find that most people breathe a sigh of relief once they have an estate plan in place, especially when they craft the custom-tailored legal documents that they need to bring their vision of the future into reality.
Should you use incentive trusts?
One way to do this is to use an incentive trust. Far too often, heirs end up squandering away the inheritance that their loved one worked hard to build. To avoid this situation, or to simply encourage your loved one to take certain actions after you’re gone, you can place assets in an incentive trust.
Here, your named beneficiary will receive periodic payments through the trust, but the bulk of the assets won’t be released until a specified condition is met. This may include taking a financial literacy course, graduating college, or even completing a substance abuse treatment program. Some people require their loved one to get married or have a child before the assets will be released. The options are numerous, which means that you can develop the trust that you think will protect your assets and set your loved one up for a successful life.
Do you understand the intricacies needed to create the right estate plan for you?
The estate planning process may seem simple on its face, but it is very nuanced, especially if you want to customize it to suit your needs. That’s why it may be best for you to work closely with a legal professional who is skilled in this area of the law. Hopefully then you can rest assured that you have a legally sound estate plan necessary to provide your estate and your loved ones the protection that is deserved.