What We Can Learn from Sting about Estate Planning: Will the Inheritance You Leave Be a Blessing or an Albatross?
Rock musician Sting recently announced that his children will not inherit his estimated $300 million fortune, saying that these riches are “albatrosses around their necks.”
The product of a British working class background, Sting is currently one of England’s wealthiest musicians, but says that he will not be passing that fortune on to his six children. In an interview with the Daily Mail, Sting said,
“I told them there won’t be much money left because we are spending it! We have a lot of commitments. What comes in we spend, and there isn’t much left. I certainly don’t want to leave them trust funds that are albatrosses round their necks. They have to work. All my kids know that and they rarely ask me for anything, which I really respect and appreciate.”
While this may sound a bit harsh, Sting’s concerns about inherited wealth can be found among many parents (wealthy and otherwise) who wrestle with whether or not bestowing wealth upon their children or grandchildren will be a blessing or a curse.
Fortunately, estate planning does offer a valuable tool for parents and grandparents with these concerns: a Wealth Creation trust, prepared using incentive provisions.
A Wealth Creation Trust with incentive provisions allows you to pass along your values as well as your wealth by attaching incentives to the distribution of your assets. For example, if grandparents want to pass on wealth to grandchildren but want to be sure those grandchildren get a good education so they know how to handle their inheritance wisely, they can set up a Wealth Creation Trust that names the circumstances under which the assets will be distributed.
If your desire is to nurture your children’s entrepreneurial spirit, you can establish a Wealth Creation Trust to provide funding for a business startup, which allows you to foster that spirit while passing on your values regarding the benefits of hard work.
While most parents want to leave something behind for their children, passing along a solid set of values along with inherited wealth is generally the desired outcome. A Wealth Creation Trust can allow parents and grandparents to accomplish this worthy goal.
A Note from the Attorney, Stan Pierchoski:
The practice of law is a second career for me. After obtaining Master of Science degrees in both Nuclear and Mechanical Engineering, I worked in the Nuclear Power Industry for 15 years. Always having an interest in law, I attended and graduated from law school and founded the Pierchoski Law Firm in 2002 in Pulaski, TN. For several years I practiced as a criminal defense, trial attorney. After my parents passed I became interested in Trust and Estate Law and felt a strong calling to change my practice to the Estate Planning area.
For years I have been exclusively doing trust writing and wealth planning and have become proficient at it. Over the last several years my practice has evolved to serve all age groups including elders and Medicaid Planning. I am always open to your questions and am more than happy to chat with you about your concerns so give me a call or stop by my office. You’ll be glad you did!