Incentive Trusts: The Promise & Limits of “Do What I Want & I’ll Reward You”

course

COURSE INFO

  • Available Until 8/13/2022
  • Next Class Time 1:00 PM ET
  • Duration 60 min.
  • Format MP3 Download
  • Program Code 08132019
  • Activity Code:   211254
  • MCLE Credits 1 hour(s)


Course Price: $65.00
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COURSE DESCRIPTION

Incentive trusts are a mechanism by which the settlor tries to “incentivize” or seek to control the behavior of beneficiaries.  Settlors may want to encourage children or grandchildren to achieve certain educational milestones, maintain a job, get married or have children, or remain free of substance abuse or other risky behaviors. But there are serious limits – limits of what the law will allow a settlor to demand of a beneficiary or a trustee to enforce.  There are also practical limits, including how to objectively judge a beneficiary’s behavior when making distributions.  Incentive trusts are decidedly a mixed bag. This program will provide you with a real-world guide to drafting incentive trusts, counseling clients about their effectiveness and limits, and understanding what the law will (or won’t) allow.

  • Uses and limitations – practical and legal – of incentive trusts
  • Types of incentive trusts – and rates of success or failure in achieving settlor goals
  • Structuring incentives so they can be objectively measured and administered by trustees
  • Drafting distribution provisions
  • Counseling clients about downsides of incentive trusts and alternatives

Speaker:

John A. Warnick is an attorney and wealth counselor in Denver, Colorado, with a national estate and trust planning practice. He is widely recognized for his counseling of high net worth families on purposeful giving, the process of not only transferring wealth but creating a lasting legacy. He is also the managing collaborator of the Purposeful Planning Institute and a wealth consultant with Family Wealth and Transition Solutions.  Mr. Warnick is a Fellow of the American College of Trust and Estate Counsel and formerly practiced law with Holme, Roberts & Owen, LLP in Denver.  He received his B.A. from Brigham Young University and his J.D. from The George Washington University Law School.