Incentive Trust for Children and Grandchildren

An incentive trust is a type of trust that is designed to provide financial incentives to beneficiaries for achieving specific goals or milestones. When it comes to children of the grantor, incentive trusts can be an effective way to motivate them to achieve certain objectives or pursue certain careers, while also ensuring that they are financially secure.

There are many types of incentive trusts that can be established for children of the grantor. Here are a few examples:

1.      Education Trust: This type of trust provides financial incentives for children to pursue higher education. The trust might pay out a certain amount of

               money for each year of college completed or for achieving specific academic milestones.

    2.       Career Trust: A career trust is designed to encourage  children to pursue specific careers or professional goals. For example the trust might pay out                   bonuses for achieving certain career milestones, such as making partner at a law firm.

    3.       Charitable Trust: A charitable trust is a trust that is established for the purpose of supporting charitable causes. The trust  might provide incentives

               for children to get involved in philanthropy, such as matching their charitable donations.

    4.       Substance Abuse Trust: A substance abuse trust is designed to encourage children to stay sober and avoid addiction. The trust might pay out

               bonuses for staying sober for a certain period of time or for completing a rehabilitation program.

It's important to work with an experienced estate planning attorney when setting up an incentive trust for children of the grantor. An attorney can help you identify the goals you want to achieve with the trust and design a plan that is tailored to your family's unique needs and circumstances.