Incentive Trust

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Dictionary Says

Definition of 'Incentive Trust'

A legally binding fiduciary relationship in which the trustee holds and manages the assets contributed to the trust by the grantor. In an incentive trust arrangement, the trustee must adhere to specific requirements set out by the grantor regarding what conditions the trust's beneficiaries must meet in order to receive funds from the trust.
Investopedia Says

Investopedia explains 'Incentive Trust'

An incentive trust operates as a sort of "conditional inheritance" for beneficiaries named in the trust. For example, say an aging investor wants to leave a certain proportion of her wealth to a grandchild, but she also wants to ensure that the inheritance money does not lessen the grandchild's drive to pursue a professional career or a higher education. By leaving the inheritance funds to the grandchild in an incentive trust, the grantor can specify that the funds are to be dispersed only once the grandchild has obtained an undergraduate degree, for example (or any other legally permissible requirements the grantor may wish to set out).

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Search results for

'Incentive Trust'

  • Encouraging Good Habits With An Incentive Trust

    http://www.investopedia.com/articles/pf/06/incentivetrust.asp
    Encouraging Good Habits With An Incentive Trust. ... (Learn the basics of this estate
    planning tool in Pick The Perfect Trust.) What Is the Incentive Trust? ...

  • Top 7 Estate Planning Mistakes

    http://www.investopedia.com/articles/retirement/08/estate-planning-mistakes.asp
    ... If they squander the gifts you give them during your lifetime, then you may want
    to consider leaving your assets to them in an incentive trust that rewards ...

  • Ethical Investing: Leaving An Ethical Legacy | Investopedia

    http://www.investopedia.com/university/ethical-investing/ethical-investing11.asp
    ... Of course, you could always establish an incentive trust if you want to make your
    beneficiaries fulfill certain requirements in order to receive your money. ...

  • Ethical Wills Share Final Thoughts With Heirs

    http://www.investopedia.com/articles/retirement/07/ethical-will.asp
    ... with material legacies. To learn about the more enforceable incentive trust,
    read Encouraging Good Habits With An Incentive Trust. ...

  • Don't Count On An Inheritance - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0212/Dont-Count-On-An-Inheritance.aspx
    ... For example, parents can use an incentive trust to reward beneficiaries with trust
    money for particular behaviors, such as attaining a college degree, holding ...

  • It Is Better To Give AND Receive

    http://www.investopedia.com/articles/pf/07/give_and_receive.asp
    ... (To read more on giving, see Encouraging Good Habits With An Incentive Trust.)
    Pint-Sized Donations To ensure a future generation of givers, it is never too ...

  • Establishing A Revocable Living Trust

    http://www.investopedia.com/articles/pf/06/revocablelivingtrust.asp
    ... Once you understand the primary mechanisms that make up a trust, you'll ... The seven
    most common trusts are credit shelter trusts (CST), incentive trusts, living ...

  • Ensuring That Your Trust Is Trustworthy

    http://www.investopedia.com/articles/retirement/11/ensuring-your-trust-trustworthy.asp
    ... (For related reading, see Encouraging Good Habits With An Incentive Trust.) In this
    article, we will look at some of the specific problems and how to prevent ...

  • Pick The Perfect Trust

    http://www.investopedia.com/articles/pf/08/trust-basics.asp
    ... (For related reading, check out Encouraging Good Habits With An Incentive Trust.)
    Other Special Trusts Estate planning includes other types of trusts too. ...

  • Are Your Bank Deposits Insured?

    http://www.investopedia.com/articles/pf/06/FDICinsurance.asp
    ... (For more insight, read Encouraging Good Habits With An Incentive Trust.); The trust
    must be valid under state law. You cannot retain an interest in the trust. ...

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