the best way to implement incentives
In order for the incentives to be effective, they have to be well implementedIn terms of the Foundational Incentives, suitable trustees would have to be appointed to oversee proper implementation.Much will depend on the nature of the Incentive, the beneficiaries and the availability of suitable Trustees
With regard to Important Incentives and Simple Incentives, the implementation can be made a little more flexible, for example the beneficiary could, if old enough, be trusted to oversee himself.Do more words in bold for contrastThere are no easy answers to the issue of rigid implementation and there are various aspects which may be difficult, such as having satisfactory evidence that implementation has indeed taken place and to the degree stated. In the event that the beneficiary chooses not to carry out the Incentive then the set amount would be given elsewhereMore on the set off if the beneficiary declines the invitationIf they carry out the incentive then the good cause will be given more . If does not carry our the Incentive then the good cause get lessWe cover in more detail aspects of how incentives may be best implemented in our book on Estate Planning and Incentives
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Drafting
Incentives in the way that they have developed in modern times are an innovation and particular care needs to be taken with regard to the drafting of the Incentives. It is important that advice is taken from those who are familiar in this type of estate planning and who have available a range of suitably drafted precedents for incentivesThere is also the question to consider as to how often the will is going to be reviewed, as certain incentives may be more suitable for beneficiaries at certain ages and you never know when that day will come.Careful thought has to be applied to ensure that the incentives stated are viable at the age that the beneficiary has to carry them out. The Incentives will have to be carefully crafted to ensure that there is no ambiguity or
If you do not wish to have incentives included in your will, then there are other ways of incentivising your beneficiaries. Guidance can also be included in a Letter of Wishes, with the will. Whilst such letters are not binding they will give a good idea of what your thoughts are.This is perhaps the best way to start regarding Incentives and then then make them more firmDiscussion
You can just sit down with your beneficiaries and discuss your wishes, however since this involves you and them in the contemplation of your death these are not welcome or easy discussions.
Conversations are also likely to be forgotten and you cannot be sure what effect the talk has had. Generally it would be better to consult a wise professional and see what may best be done and set relevant matters in writing for later review and inclusion in a letter of wishes
You can also make a dvd or audio of the guidance you wish your beneficiaries to have.
Lifetime
REDRAFT BELOW
There are of course various ways in which a Testator might consider Incentives as a part of the estate planning process. The good thinking behind incentives does not mean that Incentives have to be included in the will.The process of thinking about incentives and why you may want to include them is a valuable and worthwhile reflection on your family and its ethosSuch reflection may mean that you could provide guidance as to your wishes to the beneficiaries, whilst you are alive . For example if you believe that learning the family language is important you may want to bribe, sorry incentivise, them to do so whilst you are alive and so on.PrecedentsWe do not plan to make precedents for Incentives publicly available at present. Precedents should be specially drafted
There may be pitfalls in using boiler plate wording particularly in this area.