Page 20 avy n v y y Dear Frustrated, If you want to infl uence your heirs even after you’re gone, an incentive trust is defi nitely an option to consider, but be careful how you construct it because it can cause unintended, unfair consequences. Here’s how it works, along with some tips to help you create one. Incentive Trusts Basics An incentive trust is an estate-planning tool designed to help encourage 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 benefi ciaries do whatever it is you have specifi ed in the trust. For example, an incentive trust might encourage a benefi ciary to graduate from college, enter a particular profession, get married or even have children. They could also reward benefi ciaries 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 benefi ciaries 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 fi nancial 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 benefi ciary 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 Create One To create a solid incentive trust that accomplishes what you envision, you need to hire an estate-planning attorney who will include precise instructions that clearly spells out your wishes. You’ll also want to include language granting your trustee the right to use his or her discretion and that the trustee’s decisions should be fi nal 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 diffi cult for benefi ciaries to successfully challenge the trust or trustee in court. When a trust grants fi nal decision-making authority to its trustee, it becomes almost impossible for benefi ciaries 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 suffi cient backbone to stand up to benefi ciaries when necessary. You also need to select a successor trustee too if your fi rst 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. To fi nd an experienced attorney in your area to help you create an incentive trust, see the National Academy of Elder Law Attorneys (naela.org) and the American College of Trust and Estate Counsel (actec.org). 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 “Th e Savvy Senior” book. avvyavvy S oravvy S ioreniioor io iori by Jim Miller How an Incentive Trust Can Influence Your Heirs Dear Savvy Senior, What can you tell me about creating an incentive trust? I have an adult son and daughter that are both fi nancially inept. 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. Frustrated Father THE MALDEN ADVOCATE–Wednesday, November 22, 2023 GRANTS | FROM PAGE 9 acted with some of his favorite Disney and “Star Wars” characters. Best of all, on the trip he celebrated his birthday with his twin sister at the theme park. This will be MC’s Make-A-Wish Club’s 5th Wish in 5 years, raising over $54,000 in total. At the ceremony, MC’s MakeA-Wish Club Co-Presidents Clodagh Duff y and Colum Flood presented the check to MakeA-Wish® Massachusetts and Rhode Island’s Community Senior Manager of Corporate and Community Partnerships, Mariama Sano. Also present at the event were Malden Mayor Gary Christenson, MC President John K. Thornburg, executive team members from Make-A-Wish® Massachusetts and Rhode Island, MC Make-A-Wish Club members, Club Co-Moderators, Brother Puccio and Eilish O’Brien, and special guest, RJ, an MC Make-A-Wish Club recipient who received a parrot as his special wish the previous year. According to Mariamo, “There is something very remarkable about everything the students, parents, staff have contributed at Malden Catholic to support a local child who is suff ering from an illness. This contribution is a true testament to the power we have as a community when we come together for a cause.” Over the last fi ve years, Malden Catholic Make-A-Wish Club members and parents have joined together to raise money through a variety of events, including an Irish Dance, selling frozen bonbons, an ice cream social, dress down days and a volleyball tournament. Individ~ LEGAL NOTICE ~ ual contributors have also contributed to the wishes that were granted to children in need. “We are blessed and thankPUBLIC NOTICE CITY OF MALDEN LICENSING BOARD Notice is hereby given that a Public Hearing will be held before the Licensing Board for the City of Malden at City Hall, 215 Pleasant Street, Room 108, Malden, MA 02148 on December 12, 2023 at 6:00 p.m. regarding the application of LLAWM-Malden, Inc D/B/A Wine and Market, 888 Eastern Avenue, Malden, MA. Application is being made for an off premises S15 Package Store All Alcohol Beverages 7 day license. All interested parties will be given an opportunity to be heard. Lee A. Kinnon, Chairman Andrew Zeiberg, Member Paul Lee, Member Dated: November 22, 2023 INSPECTIONAL SERVICES 215 Pleasant Street, Room 330 Malden, Massachusetts 02148 (781) 397-7000 ext. 2044 ful for the commitment and dedication of our MC Make-AWish Club. Knowing that we can make a difference in the life of a critically ill child is truly and incredible thing,” stated Thornburg. About Malden Catholic: Since 1932 MC has shaped emerging leaders in our community, claiming a Nobel Laureate, a Senator, two ambassadors and countless community and business heads among its alumni. Annually, graduates attend some of the nation’s most renown universities. Foundational to student success is MC’s codivisional model, which off ers the best of both worlds: single-gender academics during the day and integrated social and extracurricular opportunities after school. MC is known in the community for its rigorous academics, SFX Scholars Program and award-winning STEM program. MC curricula is designed to improve individual growth mindset, leadership principles and success outcomes along with integrating the Xaverian values of trust, humility, compassion, simplicity and zeal. About Make-A-Wish® Rhode Island and Massachusetts: The organization creates life-changing wishes for children with critical illnesses. It seeks to bring every eligible child’s wish to life because a wish is an integral part of a child’s treatment journey. Research shows children who have wishes granted can build the physical and emotional strength they need to fi ght their illness. Since 1987, the organization has granted more than 8,500 wishes for children in Massachusetts and Rhode Island. City of Malden Massachusetts MALDEN PLANNING BOARD PUBLIC HEARING The Malden Planning Board will hold a public hearing in the Herbert L. Jackson Council Chamber, Malden City Hall, 215 Pleasant Street, Malden, MA at 7:00 P.M. on Wednesday, December 13, 2023 on the petition of Richard Gottschalk, Jr., Trustee of 616 Broadway Nominee Trust (Permit Application # COO-060720-2023) seeking to amend the special permit granted in Case #16-17 under Title 12, Chapter 28, Section 010.E of the Code of the City of Malden, to allow retail sales of vehicles, at the property known as and numbered, 160 Eastern Avenue, Malden, MA and known as and numbered, 160 Eastern Avenue, Malden, MA and known by City Assessor’s Parcel ID# 086 268 801 Petition and plans are available for public review in City Hall, Inspectional Services Department, Room 330, 215 Pleasant Street, Malden, MA and on the City website under Permit Application #COO-060720-2023 at https://maldenma-energovweb.tylerhost.net/apps/SelfService#/home By: Diane M. Chuha Clerk November 17, 22, 2023
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