Kiplinger's recent coverage of the Great Wealth Transfer describes an estimated $124 trillion passing from older generations to heirs and charities through 2048. For parents, that inheritance tsunami raises a personal question: What will this money do to my children?

Sometimes an adult child hasn't found their way. Jobs come and go. Parents repeatedly pay the bills. Retirement savings never seem to get started. You want to help, but you worry that an inheritance — or simply the expectation of one — could make financial independence less urgent.

An incentive trust is one possible response. It ties distributions to specified actions or achievements, such as earning income, completing education or saving money. The appeal is understandable: Your assets could encourage the habits you hope your children will develop.

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