Incentive Trusts and Foreclosure: When Incentives Become Disincentives

Gallo, Eileen
April 2008
Journal of Financial Planning;Apr2008, Vol. 21 Issue 4, p44
Academic Journal
The article focuses on the psychological concept of foreclosure and discusses the possibilities of beneficiaries losing their true selves or identity. It talks about the use of incentive trusts and the reason why people create such trusts. It determines how one develop his or her identity as well as the conflict between external and internal value systems. Also, it examines the effects of the failure to distinguish between internal and external motivation. It concludes that incentive trusts create a view of money as a goal to achieve rather than as a tool to use.


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