A New Approach to Trust Planning
For generations, trusts have been drafted to protect assets and distribute them to beneficiaries under carefully constructed standards. But is protection alone enough?
In this thoughtful webinar hosted by Shenkman Law, estate planning leaders Todd Flubacher, Abigail O’Connor, Jonathan G. Blattmachr, and Martin Shenkman explore a groundbreaking shift in trust design: Well-Being Trusts. This emerging approach reframes trusts from instruments of asset protection to vehicles that also support beneficiaries’ personal development, financial capability, and overall well-being.
Beyond Safeguarding Wealth
Traditional trusts focus on safeguarding wealth through discretionary distributions and restrictive clauses. While these tools manage risk, they often fail to address beneficiaries’ deeper needs. As Todd Flubacher shared, many settlors fear that inherited wealth will harm their children – leaving them unmotivated, disconnected, or unfulfilled. Restrictions alone can backfire, creating resentment rather than empowerment.
What Are Well-Being Trusts?
Delaware’s new Well-Being Trust statute introduces a different path. It enables trustees to implement programs supporting beneficiaries’ financial literacy, life skills, mental health, and family connection as part of trust administration itself, not merely as discretionary distributions. Family retreats, coaching, and educational programs become purposeful tools to build confidence, understanding, and resilience.
Abigail O’Connor described this as moving from the “stick” to the “carrot.” Rather than dictating what beneficiaries must achieve before receiving distributions, Well-Being Trusts invest in their ability to make informed, empowered decisions. Jonathan Blattmachr reflected on President Theodore Roosevelt’s belief that excessive inheritance can strip purpose from individuals. Well-Being Trusts counter this by equipping beneficiaries to navigate wealth responsibly and meaningfully.
Practical Considerations for Practitioners
The panel highlighted practical considerations when implementing these trusts. Determining whether well-being program expenses are trust administrative costs or taxable distributions is critical. Letters of wishes were discussed as meaningful tools for settlors to communicate intentions without imposing rigid mandates, guiding trustees with nuance and humanity.
Speakers also emphasized the importance of thoughtful implementation. Trustees must vet vendors providing educational or wellness services to ensure quality and appropriateness. While large family offices often integrate these programs, Delaware’s statute allows even modest trusts to offer scalable well-being initiatives, such as online courses or facilitated family meetings.
Empowering Beneficiaries to Thrive
This conversation challenges estate planners and trustees to reframe their roles from mere protectors of wealth to stewards of human flourishing. As Martin Shenkman emphasized, wealth is only meaningful when it empowers beneficiaries to lead lives of purpose and contribution. Abigail added that beneficiaries who understand and engage with their trusts derive far more value than those who see them as mere financial instruments.
Ultimately, Well-Being Trusts reflect a shift in estate planning away from purely legal structures toward human-centered design. Trusts are not just about passing on money; they are about equipping the next generation to thrive. As Todd concluded, “Trusts aren’t just legal documents. They are vehicles to achieve the settlor’s hopes for their family.”
Continuing the Conversation
This discussion invites planners to ask deeper questions: What does the settlor truly want for their beneficiaries? How can trusts support not only financial security but also personal growth, resilience, and fulfillment?
Watch the full webinar above to explore how Well-Being Trusts are redefining what it means to protect beneficiaries, not just from financial risk, but from the lost potential of a life unfulfilled.