For decades, the Inheritance or Succession Trust has been the cornerstone of family wealth transfer. It remains popular because it feels intuitive, fair, and human. Parents want to protect their children, but they also want them to grow into capable, independent adults.
At its core, this trust model delays ownership until certain distribution triggers are met. The most common trigger is the death of the settlor, often followed by age-based distributions such as 30, 35, and 40. This structure is familiar and widely accepted because it mirrors how many people naturally think about maturity.
In more modern designs, age alone is no longer considered sufficient. Families increasingly use incentive-based conditions to shape behavior and reinforce values. These may include completing higher education, maintaining consistent employment, avoiding substance abuse, completing rehabilitation programs, or reaching personal milestones like starting a family or purchasing a first home.
The trust becomes more than a financial vehicle, it becomes a values transmission tool.
Once the conditions are satisfied, distributions are typically made outright or in clearly defined stages. At that point, beneficiaries receive full ownership and control over their share. The trust has done its job.
This model has clear advantages. It motivates personal development, avoids overwhelming young beneficiaries, and feels emotionally fair: heirs know the wealth is ultimately theirs. Administration is also simpler over time, as the trust naturally winds down.
However, there is an unavoidable trade-off. Once assets are distributed, protection ends. The wealth becomes exposed to creditors, divorce, taxation in the next generation, and personal decision-making. Statistically, much of it disappears within two or three generations.
Inheritance trusts work best for families who prioritize individual empowerment over perpetual control, families who accept that wealth may not last forever, but want it to serve each generation meaningfully while it does.