Boise and Nampa’s estate planning attorney helps parents promote self-sufficient children
Boise and Nampa’s estate planning attorney is often asked by parents how they can create incentives for their surviving children. It is especially true for children who have been supported during their lifetime and have never developed any ambitions. Below are three ideas from a will and estate planning attorney to create incentives for children.
Milestone Funding
This funding type creates or sets up particular milestones that a child can work to attain. Once the milestone is accomplished, a distribution from the parent’s estate is made directly to the child. An instance is where a parent creates milestone funding options to motivate their child to complete their college education. A parent typically provides in the last will and testament or trust that when their child gains a college degree, a distribution should be made directly to them. Others include marriage, starting a business, going on a religious mission, or saving a specified amount of money for a major purchase, such as a home. The amount distributed will depend on whatever the parent specifies.
Opportunity Funding
It is a great choice that allows a personal representative and/or trustee to purchase an opportunity for a child instead of giving them cash or other assets when their parent dies. The representative and/or trustee may buy a business or business opportunity for the child. A parent can further provide discretion on the types of businesses that can be bought in a well-crafted last will and testament or trust. The incentive is that the more successful the business will be through the child’s efforts, the more assets and money they will earn. While this funding can create a desire in the child to succeed, the parent is essentially controlling their child regarding their profession and work choices.
Staggered Funding
It is when a parent chooses the specific ages when their child will receive a distribution from their estate. An example is when clients create a 1/3 staggered funding option where their child receives one-third of the distribution from a Trust at the ages of 25, 35, and 45. That is an example of the ages and types of staggered funding that may occur. There is no limitation or specification on the ages and number of distributions as it is up to how the parent deems fit. This funding option is attractive for boosting self-sufficiency during the period which the child is on their own. It makes them dependent on themselves instead of depending on the distributions from their parent’s property for productivity. Besides, the distributions become more like a bonus than a benefit. That means the funds improve who they already are instead of the funding dictating who they become.
Choose Boise and Nampa’s best estate planning attorney
The above are only examples of incentives that parents can consider. Having a sit-down with Boise and Nampa’s best estate planning attorney can open you up to more options that may suit your needs through a tailored plan.
Jacobson & Jacobson Law Firm, since 1982, is committed to serving the Boise and Nampa, Idaho areas for your top Criminal Defense, Personal Injury, Business Law, Estate Planning, Family Law, Immigration Law, and Litigation needs. Contact us today to get started. For a free 30-minute consultation, book here: https://calendly.com/jfj-1