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It is not always as simple as saying okay, I have five heirs, they all get a fifth of the estate and they can use it as they say fit.
Aside from the varying specifics involving exactly what you may want to give to each heir, you also have to consider the human element.
Based on your knowledge of the people involved, how do you think that their inheritances will affect their lives? Is it definitely good for them to receive a large sum of money all at once with no strings attached? If you have reservations about the impact the inheritances might have on your heirs, you may want to consider incentive trusts.
They can be used to motivate people toward positive achievements or discourage destructive behavior.
For example, distributions from the trust might be made each month while an heir stays in college, and there may be a lump some distribution upon completion of graduate school.
Some people choose to tie the trust distributions to the personal earnings of the beneficiary, perhaps distributing a dollar from the trust for every dollar earned by the beneficiary each year.
The other approach is to use the trust to provide an incentive for your hears to steer clear of destructive behavior, and one thing that comes to mind along these lines is substance abuse.
Distributions could be contingent upon the completion of a rehabilitation program coupled with ongoing testing.
Depending on the individual involved, exactly what types of incentives would seem prudent is going to vary.
These are a few examples, but exactly what you choose to stipulate in the trust is up to you.
If you felt as though one of your heirs was not adventurous enough, distributions could be made according to the number of passport stamps he or she can present.
You can be as creative as you want to be, and though incentive trusts may not be necessary or appropriate for everyone, they can fill a need in some cases.
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