In American estate planning parlance, an incentive trust is a trust designed to encourage or discourage certain behaviors by using distributions of trust income or principal as an incentive. A typical incentive trust might encourage a beneficiary to complete a degree, enter a profession, or abstain from harmful conduct such as substance abuse. The beneficiary might be paid a certain amount of money from the trust upon graduating from college, or the trust might pay a dollar of income from the trust for every dollar the beneficiary earns.
Although incentive trusts have apparently become more common in the early 21st century, a 2007 survey found that less than one-third of wealthy Americans attach conditions to the distribution of their estates.[1] According to Joshua Tate, an assistant professor at SMU Dedman School of Law, incentive trusts pose a problem of inflexibility: "because the settlor cannot foresee all potential eventualities or circumstances and take them into account in the trust, the terms of the trust can prove to be a burden for the beneficiaries."[2] Eileen Gallo, a noted psychotherapist, has argued that, although incentive trusts may be effective in changing behavior, they may in fact be damaging to the beneficiaries, in that they rely on external motivation to encourage activities that should be autotelic in nature.[3] The seeming popularity of incentive trusts, however, is reflected in the many websites created by estate planners to market them.
incentivetrust is a trust designed to encourage or discourage certain behaviors by using distributions of trust income or principal as an incentive....
A perverse incentive is an incentive that has an unintended and undesirable result that is contrary to the intentions of its designers. The cobra effect...
A testamentary trust (sometimes referred to as a will trust or trust under will) is a trust which arises upon the death of the testator, and which is specified...
In the trust law of England, Australia, Canada and other common law jurisdictions, a discretionary trust is a trust where the beneficiaries and their entitlements...
A resulting trust is an implied trust that comes into existence by operation of law, where property is transferred to someone who pays nothing for it;...
A charitable trust is an irrevocable trust established for charitable purposes. In some jurisdictions, it is a more specific term than "charitable organization"...
trusts with special tax advantages include: the share incentive plan, and the employee ownership trust See, for example, the UK definition of a trust...
A blind trust is a trust in which the trust beneficiaries have no knowledge of the holdings of the trust, and no right to intervene in their handling....
A special needs trust, also known in some jurisdictions as a supplemental needs trust, is a specialized trust that allows the disabled beneficiary to...
In trust law, a constructive trust is an equitable remedy imposed by a court to benefit a party that has been wrongfully deprived of its rights due to...
explanations as to the cause allowing the operation of an incentive scheme to reduce delays. TRUST is used to record when a train passes a measuring point...
In trust law, a spendthrift trust is a trust that is created for the benefit of a person (often unable to control his/her spending) that gives an independent...
2022. Zane, J. Peder (12 March 1995). "Ideas & Trends: The Rise of IncentiveTrusts; Six Feet Under and Overbearing". The New York Times. "4th Wife Divorces...
The Wellcome Trust is a charitable foundation focused on health research based in London, United Kingdom. It was established in 1936 with legacies from...
In trust law, an express trust is a trust created "in express terms, and usually in writing, as distinguished from one inferred by the law from the conduct...
United States trust law is the body of law that regulates the legal instrument for holding wealth known as a trust. Most of the law regulating the creation...
A purpose trust is a type of trust which has no beneficiaries, but instead exists for advancing some non-charitable purpose of some kind. In most jurisdictions...
antitrust measures or attacking monopolistic companies (known as trusts) is commonly known as trust busting. The history of competition law reaches back to the...
Supplemental needs trust is a US-specific term for a type of special needs trust (an internationally recognized term). Supplemental needs trusts are compliant...
for anyone in a position of trust and so can refer to any individual who holds property, authority, or a position of trust or responsibility for the benefit...
The National Trust for Historic Preservation is a privately funded, nonprofit organization based in Washington, D.C., that works in the field of historic...
interest (or life rent in Scotland) is a form of right, usually under a trust, that lasts only for the lifetime of the person benefiting from that right...
In trust law, a bare trust is a trust in which the beneficiary has a right to both income and capital and may call for both to be remitted into their own...
mostly symbolic, their recognition of significance provides some financial incentive to owners of listed properties. Protection of the property is not guaranteed...
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