Mountain Views News, Pasadena Edition [Sierra Madre] Saturday, November 5, 2016

THE GOOD LIFE

9

Mountain Views-News Saturday, November 5, 2016 

SENIOR HAPPENINGS

INCENTIVE TRUSTS CAN MOTIVATE YOUR HEIRS


Dear Savvy Senior,

What can you tell me about incentive trusts? I have 
two adult children that are financial disasters. 
Before I die, I want to put some type of requirements 
in place that they will need to follow in order to 
receive their portion of my estate. Otherwise, 
they’ll blow it all in the first year.

Troubled Parent

Dear Parent,

If you want to influence your family members even 
after you’re gone, an incentive trust is definitely 
an option to consider. Here’s how it works, along 
with some tips to help you create one. 

 

Incentive Trust?

An incentive trust is an estate-planning tool 
designed to help prod your heirs in a direction 
you desire when you’re no longer around. 

 With an incentive trust, some or all of your 
assets are passed to your trust when you die 
rather than directly to your heirs. Your trustee 
is empowered to distribute funds from the trust 
only if and when your beneficiaries do whatever it 
is you have specified in the trust.

 For example, an incentive trust might encourage 
a beneficiary to graduate from college, enter a 
particular profession, get married or even have 
children. They could also reward beneficiaries 
who do charitable work, or supplement the 
incomes of those who choose low-paying, yet 
meaningful careers like teaching or social work. 
Or, they could penalize beneficiaries who don’t 
work by cutting off or decreasing distributions, 
or placing restrictions on heirs with addictions 
by requiring that payments go directly to rehab 
centers.

 But be aware that these types of trusts can 
also have drawbacks. A poorly constructed 
incentive trust can have a high risk of unintended 
consequences. For example, if your trust provides 
a financial incentive for your children to be 
employed full-time, but one of them gets sick or 
seriously injured in a car accident and can’t work, 
they would be punished unfairly.

 You also need to know that incentive trusts 
aren’t cheap. You can expect to pay an attorney 
$2,500 to $5,000 to draft one. 

 There are also legal limits on what you can do 
with an incentive trust. While state laws vary, 
incentive trusts that encourage a beneficiary 
to join or leave a particular religion, or leave a 
spouse or not marry at all, can be challenged in 
court and possibly struck down. 

How To Make One

To create a solid incentive trust that accomplishes 
what you envision, tell your estate-planning 
attorney that you want to include precise 
instructions that clearly spells out your wishes, 
but you also want to include language granting 
your trustee the right to use his or her discretion 
and that the trustee’s decisions should be final 
and binding. 

 This allows your trustee to make common 
sense rulings, which will reduce or eliminate the 
chances of unintended and unfair consequences. 
It also makes it very difficult for beneficiaries 
to successfully challenge the trust or trustee 
in court. When a trust grants final decision-
making authority to its trustee, it becomes almost 
impossible for beneficiaries to successfully argue 
that this trustee is not correctly implementing the 
trust’s terms.

 The key is to select a trustee who’s smart 
enough to interpret your intent and has sufficient 
backbone to stand up to beneficiaries when 
necessary. You also need to select a successor 
trustee too if your first choice can no longer serve. 
Fees paid to a trustee vary widely depending on 
the state’s fee schedules, the size and complexity 
of the trust, and conditions laid out in the trust.

 

 Send your senior questions to: Savvy Senior, P.O. 
Box 5443, Norman, OK 73070, or visit SavvySenior.
org. Jim Miller is a contributor to the NBC Today 
show and author of “The Savvy Senior” book.

HAPPY BIRTHDAY! ….November Birthdays*

Flo Mankin, Alberta Curran, Carmela Frontino, Kathy Wood, Lena Zate, Joe 
Pergola, Janice Kacer, Valerie Howard, “Mike” Ruggles, Joan Ruggles, Lois Stueck, 
Jean Wood, Shirley Yergeau, Kathi Jefferson, Pat Krok, Irene Nakagawa, Anna Ross, 
Mary Steinberg and Sue Quinn. 

* To add your name to this distinguished list, please call the paper at 626.355.2737. 
YEAR of birth not required but you must be over 60.

...................................................................

ACTIVITIES: Unless listed differently, all activities are at the 
Hart Park House (Senior Center) 222 W. Sierra Madre Blvd., Sierra Madre

 

 

 YWCA San Gabriel Valley - Intervale Senior Cafe 

Seniors 60 years of age and up can participate in the YWCA Intervale daily 
lunch program held at the Hart Park House Senior Center. Meals are served Monday through Friday 
at 12:00 pm and participants are encouraged to arrive by 11:45 am. Meals are a suggested donation of 
$3.00 for seniors 60 and over or $5.00 for non-senior guests. Daily reservations are necessary, space is 
limited. Please reserve your lunch by calling 626-355-0256.

Tech Talk: Will resume in the fall. 

Hawaiian and Polynesian Dance Class: Every Tuesday morning from 10:00 - 11:00am. Join instructor 
Barbara Dempsey as she instructs you in the art of hula. 

Bingo: Every Tuesday beginning at 1:00 pm. Cards are only $0.25 each! Everyone is welcome to join. 
May be cancelled if less than 5 people. 

Free Blood Pressure Testing: 2nd Tuesday of the month from 11:00am - 12:00 pm. No appt. necessary. 

Chair Yoga: Mondays and Wednesdays from 11:00 - 11:45am. A suggested donation of $5 at one of the 
classes is requested, but is not required. 

Case Management: Meets the second Thursday of the month. Case Management services are provided 
by the YWCA and provide assistance in a variety of areas. Appointments are required and can be 
scheduled by calling the HPH Office at 626-355-7394. 

Birthday Celebrations: Every second Thursday of the month at the Hart Park House. The free birthday 
cake is provided by the Sierra Madre Civic Club. 

 Game Day: Every Thursday starting at 12:00 pm. (Please note the time change.) A regular group of 
seniors play poker. Other games available for use. 

 Free Strength Training Class: Every Friday from 12:45 - 1:30 pm with Lisa Brandley. The class utilizes 
light weights for low impact resistance training. All materials for the class are provided. 

Senior Club: Every Saturday at the Hart Park House Senior Center. Brown bag lunch at 11:30am. 

LUNCH AND LEARN

Thurday, October 27th, 11:00am - 1:30pm

Medicare Annual Election Period is here. If you have any questions on your health plans, please 
come to the Medicare Resource Table at the Hart Park House on October 27th from 11:00 a.m. 
to 1:30 p.m. A licensed representative will be available to answer questions as well as gather 
information. No appointment necessary.

SENIOR EXCURSION - 

NOVEMBER EXCURSION

GRABER OLIVE HOUSE (ONTARIO)

Date: Wednesday, November 9th, 2016 
Time: 9:45am - 2:30pm 
Meeting Location: Hart Park House 
Cost: $10.00 (Does not include lunch)

Description: Founded in 1894, the historic Graber Olive House 
is located in a pleasant residential area north of Ontario’s 
Business District. Here in quiet and serene surroundings, 
visitors are welcomed and delighted to discover a bit of early California. Participants will take a guided 
tour of the facility and may browse leisurely in the gift shop which feature Graber Olives, fine goods, 
and gifts. Lunch will be on your own at Molly’s Souper. Please bring money for lunch and souvenirs if 
desired. Level of walking: Medium. Please call the Hart Park House 626-355-7394.


Mountain Views News 80 W Sierra Madre Blvd. No. 327 Sierra Madre, Ca. 91024 Office: 626.355.2737 Fax: 626.609.3285 Email: editor@mtnviewsnews.com Website: www.mtnviewsnews.com