Can You Build Accountability and Responsibility into Your Trusts and Wills?

Traditional estate planning commonly creates what we refer to as an Equal Distribution Trust, which divides all your assets equally among your heirs. When raging a war with an enemy the common strategy is to “divide and conquer.” Why would you want to “divide” your family? See Estate Planning for more details.

EQUAL OPPORTUNITY TRUST

We recommend an Equal Opportunity Trust,* due to its ability to encourage a “we” mentality instead of a “me” mentality. An Equal Opportunity Trust sets the stage for generational wealth, meaning that your assets provide new life and resources to your future generations in a way that fosters responsibility and accountability.

Consider establishing a Perpetual Family K.A.S.H. Fund. This “bank” is a repository for the K.A.S.H. (Knowledge, Attitudes, Skills, and Habits) that you want to intentionally pass down to your children and grandchildren. It can be as simple as a conceptual fund that collects assets from all three dimensions of wealth, or it can include more sophisticated approaches, such as itemizing the family rules of governance within a trust.

For example, instead of passing down all of your assets to unprepared heirs, your trust could have rules of governance so that future generations could take loans from your money within the trust for college or advanced studies. This money could then be paid back at a small interest rate, and that money could in turn be used to increase opportunities and education for generations to come.

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*Consult an attorney on Trust and Will preparation