When you are engaged in inheritance planning you have to consider the impact that a large windfall will have on the recipients. Perhaps you have some heirs on your inheritance list that are established in their own right, having demonstrated the ability to handle their own affairs effectively. You may have no hesitation about leaving a lump sum to someone like this, but there could be other people who will be receiving inheritances that could use some guidance.
You have options available to you when you are planning your estate and you have the control. It is possible to guide loved ones in fruitful directions, and one way of doing this would be through the creation of an incentive trust.
A lot of people may have concerns about spoiling a loved one, and incentive trusts can be a solution. With an incentive trust you can include conditions that must be met before distributions will be paid out.
So you could for example require the beneficiary to earn money in his or her own right as a stipulation that must be satisfied before distributions are made. Some people will direct the trust to match the earnings of the beneficiary.
You can also include age benchmarks, providing distributions or upping distributions when the beneficiary reaches a certain age.
As the grantor you know your family better than anyone and you can stipulate whatever you would like to. To learn more about incentive trusts, simply take action right now and arrange for a consultation with a licensed and experienced Indianapolis estate planning attorney.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.