Incentive and Educational Trusts
An incentive trust is a useful tool for ensuring that your children, relatives, or any other benefactors of the trust, do not squander the money and/or assets being left for them. These trusts have conditions for distributions that can be set by the creator of the trust. For example, you might decide your child must graduate from college first before they can benefit from the assets you have left for them. Through the trust, your money and/or assets would be managed by a trustee until your predetermined conditions are met by the beneficiary, upon which they can enjoy the benefits of what you have left for them.
Educational trusts can be an extremely useful tool as well, allowing for you to leave behind money and/or assets specifically for a named beneficiary’s education, such as a child’s college education. Like in an incentive trust, an educational trust also allows for you to appoint a trustee to look over the assets and/or money until the beneficiary meets the required conditions of the trust.