Definition of Incentive trust
A legitimately restricting fiduciary relationship in which the trustee holds and deals with the benefits added to the trust by the grantor. In an incentive trust in plan, the trustee must hold fast to particular prerequisites set out by the grantor with respect to what conditions the trust’s recipients must meet so as to get stores from the trust.
Brief Explanation of Incentive trust
It works as a kind of “conditional inheritance” for recipients named in the trust. For instance, say a maturing financial specialist needs to leave a specific extent of her wealth to a grandchild, however she likewise needs to guarantee that the inheritance cash does not reduce the grandchild’s drive to seek after an expert profession or an advanced education. By leaving the inheritance assets to the grandchild in a incentive trust, the grantor can indicate that the assets are to be scattered just once the grandchild has gotten a college degree, for instance (or whatever other legitimately reasonable prerequisites the grantor may wish to set out).