Wealthy clients can successfully pass their property to heirs through various forms of instruments. Estate planning attorneys along with trustees, executors and fiduciaries may find certain types of trusts to be valuable tools when there are specific bequests to be made. To help in this arrangement, advisers might suggest targeted trusts, which allow a family patriarch or matriarch to guide the following generations in the use of their inheritance.
One kind of trust advisers might find useful is the travel trust. This would be earmarked for travel by its beneficiaries, which may seem frivolous but actually is often used to help children and grandchildren find a deeper understanding of their roots. A travel trust could be a thoughtful gift to enrich the lives of the younger people in a family and could enable them to visit older relatives who have retired and moved to another country.
Another tool that is growing in popularity among people who want to make a difference in the lives of their progeny is the incentive trust. Perhaps worried that heirs will just waste the money coming to them in an inheritance, a grantor may use an incentive trust to keep the recipients involved in life, whether through work or via other lifestyle rules such as avoiding drugs and alcohol.
Some people may have assets such as a vacation home that they wish to make available for the enjoyment of future generations while ensuring that it remains in the family. While these and other types of targeted trusts may be viewed as examples of grantors wishing to retain too much control, they can also allow estate planning clients to help ensure that their children and grandchildren are making good decisions with their bequests.