A lot of New Yorkers are daunted by the estate planning process. It’s not only difficult to think about your own mortality, but it’s also hard to think about how best to leave assets to your loved ones, especially if you’re unfamiliar with estate planning options and applicable laws. The great thing about estate planning, though, is that it’s entirely customizable to suit your needs. As an example, let’s look at the incentive trust.
What is an incentive trust?
An incentive trust is an estate planning vehicle that you can utilize to leave assets to a loved one in a controlled fashion while motivating that loved one to act in a certain way. Here, assets are left to a beneficiary in a trust with periodic disbursements, but oftentimes the principle of the trust isn’t released to the beneficiary until an identified condition is met.
You can be creative with the conditions that you place on an incentive trust. You can require a grandchild to get married or have a child before assets are released to him or her, or you could mandate that the beneficiary maintain employment for a specified period of time or graduate college. You can even drive a loved one to receive substance abuse treatment, if that’s a concern for you, prior to releasing trust assets. In other words, incentive trusts are a great way to control your estate even after you’re gone, ensuring that it won’t be squandered away, while pushing your loved ones to live a better life.
Secure help dealing with the intricacies of estate planning
We know that on its surface estate planning can seem complex, especially if you have a significantly sized estate. But you don’t have to get tangled up in the intricacies of estate planning. Instead, you can work closely with a legal professional who is experienced in this area of the law and who can guide you to the completion of an estate plan that is right for you and your loved ones.