Inheritances
Wealth
If you buy a car you have to learn to drive before you can use it. If you have a computer , you will have a manual and instructions. Even a washing machine comes with a manual.
Generally however there is little guidance left as to how best to apply and use inherited wealth, Money is called currency as it flows, like a current. It has have a powerful influence and a devastating effect.
Yet it is assumed that people will know how best to use and spend it wisely. Experience shows that this is not the case and the greater the wealth the lesser it is usually applied sensibly and usefully
Liquidity
Importantly when the estate assets are sold, the amount will be liquid and capable of easy disposal. Even when alive the person leaving the wealth, would not have had that amount of liquid wealth at his disposal, and would not have been able to consider how best he might spend such sums himself. Think of the task beneficiaries will have in spending what is left to them, most of which will be capable of being turned into ready cash.
Guidance
It therefore seems sensible to leave some guidance as to the best use of the wealth at the very least. Your beneficiaries then have the option of following your guidance, in part or more substantially. Most people do not leave such guidance and one of the aims of this site is to encourage people to do that. You do not have to include Incentives in your will, you can pass on your guidance in other ways, such as Letters of Wishes. Very often people have concerns about how well their wealth might be applied but are unaware of how best their wisdom can be applied when they are no longer here.
" Money is like muck, not good except it be spread "
Sir Francis Bacon
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In essence , you will be asking your beneficiaries to carry out some task or occupation, after your death, which you believe would improve and enhance their life. In order to ensure that they carry out your wishes you are providing them with an inducement, namely the awarding of a sum of money from your estate upon accomplishment of the task.
The rationale is that rather than just leave money to your beneficiaries and let them spend it as they wish, inducing them to engage in tasks considered to be improving, will enhance their lives and hopefully improve their prospects.
The reward for the task may be a small sum or a large fortune depending on circumstances.
Amount for Incentives
Place this later. Once revision done re organise contents
The amount you set aside for incentives will depend upon the size of your estate, the needs of your beneficiaries and many other factors. If your beneficiaries are quite young, then you will need to take greater care with the choice of trustees and perhaps have stronger Foundational Incentives to ensure that your child will develop a character that your wealth is less likely to spoil.
If your beneficiaries fail to carry out the task or tasks then the set amount could go to a suitable charity or other good cause. Hence the beneficiaries then have a a choice, as to whether or not they wish to perform the nominated task or tasks.And if thought through and applied well, the 200000 will help the beneficiaries to make better use of the rest of the inheritance.l.Perhaps setting aside twenty percent of an estate worth a Twenty million pounds would be a starting point. Of course the proportions could be different depending on several factors, such as the size of the estate and the purpose intended for incentives. The money can be spread across a range of Incentives.
The amount to set aside for incentives will vary from estate to estate and from family to family. Once careful thought is applied as to the range of incentives, and their rationale and purpose it would be easier to decide how to allow for incentives, if at al
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