๐๐๐บ๐ฎ๐ป-๐ฐ๐ฒ๐ป๐๐ฟ๐ฒ๐ฑ ๐๐ป๐ต๐ฒ๐ฟ๐ถ๐๐ฎ๐ป๐ฐ๐ฒ & ๐๐ฒ๐ป๐ฒ๐ณ๐ถ๐ฐ๐ถ๐ฎ๐ฟ๐ ๐ช๐ฒ๐น๐น-๐ฏ๐ฒ๐ถ๐ป๐ด ๐ง๐ฟ๐๐๐๐
โHuman-centered design has in recent years, transformed business, healthcare, education, I.T. and economics, among other fields.
It emerged in the 50s as a problem-solving tool focused on empathy and improving user experiences.
Today, itโs an ethos that emphasises human dignity and personhood, in a world that reduces human beings to mere factors of production and consumption
๐ง๐ต๐ฒ ๐๐ฒ๐น๐ฎ๐๐ฎ๐ฟ๐ฒ ๐๐ฒ๐ป๐ฒ๐ณ๐ถ๐ฐ๐ถ๐ฎ๐ฟ๐ ๐ช๐ฒ๐น๐น-๐ฏ๐ฒ๐ถ๐ป๐ด ๐ง๐ฟ๐๐๐
The time for a human-centred approach to inheritance and family wealth is here.
A trust is a legal arrangement where one party (a โtrusteeโ) holds and manages assets for the benefit of another (a โbeneficiaryโ), according to specific, written rules set out in a trust document.
They are one of the most flexible and useful tools around, which is why they feature heavily in family wealth management and estate planning.
Most trusts are focused on financial goals โ safeguarding wealth or minimising taxes, often at the expense of beneficiariesโ personal development, mental health and well-being.
The US State of Delaware wants to change that, with the Beneficiary Well-Being Trust concept it introduced last year.
This allows trustees to fund activities for trust beneficiariesโ holistic development, including financial literacy and entrepreneurship courses, counselling, personal coaching, and personal and family retreats.
The aim is to prepare beneficiaries not just financially but intellectually and psychologically too, for the responsibilities that come with inheritance, including:
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1. Wealth Management: Equipping beneficiaries with skills to manage their inheritance well, including on personal finance and trusts
2. Family Legacy: Educating beneficiaries on their familyโs history and values to foster identity and purpose
3. Well-Being: Providing support to ensure beneficiaries can navigate the psychological aspects of wealth
๐ฃ๐ผ๐๐ฒ๐ฟ๐ฒ๐ฑ ๐ฏ๐ ๐ฃ๐ผ๐๐ถ๐๐ถ๐๐ฒ ๐ฃ๐๐๐ฐ๐ต๐ผ๐น๐ผ๐ด๐
The Beneficiary Well-being Trust is born from the union of trust law and positive psychology, which is the scientific study of what makes life worth living.
Instead of focusing on neurosis or whatโs wrong, it looks at how to grow in whatโs right: resilience, gratitude, strengths and how people flourish in life.
Integrating positive psychology into trusts just makes sense, since true wealth is more than money; the right mindset, mental state and skills are also needed for a fulfilling life.โ
๐ง๐ต๐ฒ ๐ข๐ฝ๐ฝ๐ผ๐ฟ๐๐๐ป๐ถ๐๐
Delawareโs precedent for human-centered family trusts is bold and timely.
People matter; their trusts should reflect that.
While Singapore doesnโt have equivalent trust legislation, ours is flexible enough to permit something similar to the Beneficiary Well-being Trust.
In fact, I have โ for a while now โ been using positive psychology concepts and a human centred approach to designing trusts for my clients.
My clients get to have their cake and eat it too, since flourishing, financially literate and responsible heirs are unlikely to pawn the family jewels for a wasteful or debauched life.
Prioritise human dignity and personhood flourishing for your beneficiaries, or preserve wealth? Why not both?
