Three Trust Features to Empower your Millennial Beneficiaries
If you are leaving assets in trust for your millennial beneficiaries, it is crucial to recognise the characteristics that distinguish them from older generations. Millennials are those people born between the early 1980s and the 1990s, sometimes known as “Generation Y”. Millennials value relationships with superiors, have a passion for learning and growth, want to live a life of meaning, and are creative and free-thinking.
To help millennials reach their full potential, consider the following three trust features:
Have your millennial beneficiary serve as a co-trustee of their trust alongside an experienced advisor: while you may trust your beneficiary's judgment, they may appreciate the opportunity to seek advice from a trusted advisor, secure positive reinforcement and get constructive feedback. For instance, consider naming a family member or friend with a background in finance as the co-trustee or naming a corporate trustee, such as a bank, that brings expertise in acting as a fiduciary.
Give your beneficiary the opportunity to choose their charity of choice: Millennials want to make a remarkable impact on the world, so providing them with the power to redirect where assets go upon their death, including to charitable causes, can help support this goal. You can give your millennial beneficiary the ability to change distribution percentages between their children or provide for new beneficiaries such as charities.
Broadly define the standards for which distributions can be made to your beneficiary: Millennials tend to think outside the box, so consider allowing a broader standard for distributions to tap into their entrepreneurial spirit. The commonly used trust distribution standards of health, education, maintenance, and support may hinder their ability to tap into their trust funds to pursue their dreams. Instead, allow distributions for purposes that align with their passions and personal objectives.
It's important to note that trust features that work well for older beneficiaries may not be optimal for Millennials, so it's essential to design a trust that supports their unique traits.
As a UK chartered tax adviser and trust and estate planner, I am available to help you design an estate plan that benefits your Millennial beneficiaries.
