• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Kuhn and Kuhn Law Firm

South Carolina Estate Planning Attorneys

  • Home
  • Our Firm
    • About Our Firm
    • About The American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • Talkin Law
  • Services
    • Asset Protection & Business Planning
    • Charleston Pet Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family Farms and Businesses
    • Healthcare Documents and DPOAs
    • Incapacity Planning
    • LGBTQ Estate Planning
    • Living Trusts
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Will Packages
  • Reports
    • Advanced Estate Planning
    • Basic Estate Planning
    • Estate Planning for Niches
    • Trust Administration
  • Resources
    • Client Resources – Estate Planning
    • Consumer Resources – Estate Planning  
    • Elder Law Reports
    • Professional Resources
  • Contact Us
    • Directions to Our Charleston Office
  • Blog
Home / Estate Planning / Incentive Trusts: A Nudge Toward Success

Incentive Trusts: A Nudge Toward Success

December 5, 2011 by John Kuhn, Estate Planning Attorney

As you take stock of the different people that you will be leaving inheritances to you are likely to feel perfectly comfortable leaving a lump sum inheritance with no strings attached to some of your heirs. However, there may be others who have not yet made their mark in the world, and you may be concerned that leaving them too much too soon may do more harm than good. You may also have people on your list who have personal problems, or a history of poor money management.

One option that you may want to consider if you do want to place some conditions on an inheritance would be to create an incentive trust. You fund the trust, appoint a trustee and name your beneficiary, and when you are drawing it up you include stipulations that must be met before distributions from the trust will be made.

For example, you could state that monthly distributions will be made as long as the beneficiary remains a student in good standing at a college or university. You may add that a lump sum will be made available as a reward for every level of education completed. And you could then instill a work ethic in the beneficiary by allowing for a dollar-for dollar match out of the trust for each dollar earned on the job by the beneficiary.

You can also use an incentive trust to guide the beneficiary away from self destructive behavior. If you had an heir who had a substance abuse problem, for instance, you could require this individual to successfully complete a rehabilitation program and subsequently submit to substance testing before distributions will be made.

These are just a couple of hypothetical scenarios, but you can basically stipulate any condition you want met as long as it is not something that is illegal.

  • Author
  • Recent Posts
John Kuhn, Estate Planning Attorney
Former South Carolina State Senator, John Kuhn is a founding partner of the Kuhn & Kuhn Law Firm.The Kuhn & Kuhn Law Firm is a boutique estate planning (wills, trusts and probate) firm, which he and his wife opened in 2002.The law firm was created to serve clients who want an excellent and thorough estate plan.
Latest posts by John Kuhn, Estate Planning Attorney (see all)
  • Preparing for Coronavirus - March 10, 2020
  • Incapacity Planning - December 20, 2018
  • Special Accounts for People with Special Needs - December 17, 2018

Filed Under: Estate Planning Tagged With: Estate Planning, Inheritance Planning, Trusts

Primary Sidebar

Subscribe to Our Blog

Kuhn & Kuhn Law Firm

Charleston
473 Savannah Highway
Charleston, SC 29407
Phone: 843-577-3700

Charleston Map

map for Charleston office

Kuhn & Kuhn Law Firm

Summerville
421 Old Trolley Road
Summerville, SC 29485
Phone: Our Satellite Office

Summerville Map

map for Summerville office

Opening Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 5:00 PM

Footer

  • About The Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

© 2023 Kuhn and Kuhn Law Firm
All Rights Reserved.
Attorney Advertisement

footer-logo

Subscribe to our newsletter

  • Facebook
  • Linkedin
  • Youtube
  • Twitter

© 2023 American Academy of Estate Planning Attorneys, Inc.

Copyright © 2023 · Kuhn & Kuhn on Genesis Framework · WordPress · Log in