Oftentimes, they have the unintended consequence of punishing children for doing things their parents would actually approve. For example, by giving a child more money from the trust based on how much they earn might discourage them from taking an easy or part-time job, but the child would also be discouraged from taking a lower paying public service job.
Incentive trusts can be written in such a way that heirs are encouraged to do appropriate things, but they need to be flexible.
It can be a good idea to give the trustee some discretion to make trust disbursements in accordance with conduct the trustee thinks the parents would have approved.
An estate planning attorney can guide you in a plan that will fit your individual circumstances.
