Not Your Typical Incentive Trust: The ROTE and FST, Part 1

Gallo, Eileen; Gallo, Jon J.; Grubman, James
April 2011
Journal of Financial Planning;Apr2011, Vol. 24 Issue 4, p32
Academic Journal
The article discusses the disadvantages of using the Results-Oriented Trust Environment (ROTE) and the Financial Skills Trust (FST) in the U.S. It states that these incentive trusts are ineffective because they involve cognitive skills such as reasoning, memory and judgment. It mentions that another reason is the findings of several studies regarding the use of incentivized money in unethical and illegal manners. It also notes outcome of estate planning articles which referred these trusts as inflexible and difficult to manage.


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