Complications in Putting Unborn Spoiled Brats to Work: Using Lessons from Labor Supply Theory to Design Incentive Trusts by John Michael Grant

John Michael Grant, has made available for download his paper, “Complications in Putting Unborn Spoiled Brats to Work: Using Lessons from Labor Supply Theory to Design Incentive Trusts.”  The Abstract is as follows::

Labor Supply Theory has never been applied to estate planning, despite its relevance to the design of incentive trusts. I first discuss common incentive trust structures and goals, and possible alternative provisions designed to encourage a beneficiary to engage in productive work. Next, I give a brief presentation of labor supply theory and indifference curve modeling. I then apply the models to alternative incentive trust structures and will offer arguments for the adoption of a minimum salary structure with wage enhancements. I conclude by offering reasons to doubt certain underlying assumptions and to hesitate before advising clients to adopt the recommended structure.

Download full paper at: Complications in Putting Unborn Spoiled Brats to Work: Using Lessons from Labor Supply Theory to Design Incentive Trusts by John Michael Grant :: SSRN

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.