Incentivising Trust
What is an Incentivising Trust?
Incentivising Trusts are an excellent way to encourage Beneficiaries to work for a living or go to university rather than simply inheriting from your estate.
LCS have an array of friendly and personable staff, who create comprehensive Trusts for our clients.
Inheritance Trusts have been referred to as Beach Bum Trusts in the media making them sound like a gimmick. However, they are becoming increasingly popular.
In layman terms, the Trust will match whatever income the Beneficiary earns throughout the year.
So, if they have no income as they had a previous bank balance which allowed them to not work and to be a ‘beach bum’, then they would not receive anything from the Trust. If the Beneficiary is in employment and earns an income, the Trust can match the income in question.
An Inheritance Trust ‘could’ match whatever income the Beneficiary earns throughout the year, therefore if there is no income being earnt by the Beneficiary, they will not receive money from the Trust. Equally, a bonus and/or stand-alone payments could be made for completing University. Ultimately it is up to you to decide when and for what reason or achievements you would like your Beneficiary to benefit from the Trust.
This a great way to incentivise Beneficiaries to reach their full potential rather than simply living off of their inheritance.
Trust FAQs
What is the purpose of a trust?
How does a trust Work?
Who Creates a Trust?
What is a Trustee?
Trusts offer a means of holding and managing money or property for people who may not be ready or able to manage it for themselves. Trusts can protect your assets, such as your home. They can help ensure that your assets are passed on in accordance with your wishes after you die.
A Trustee should be appointed to legally manage and administer the Trust in accordance with the wishes of the person creating the Trust.
A Trust can either be set up by you during your lifetime or by your Trustee after your death and in accordance with your Will.
Trustees are the ‘legal holders’ of any Trust property and they manage and distribute the Trust assets. There can be one or more Trustees.