John Provo Receives 2021 "AV Preeminent®" Rating

John Provo has received an “AV Preeminent®” rating from Martindale-Hubbell, an independent service which has rated attorneys nationwide for more than a century. An “AV Preeminent” rating is given to attorneys who are ranked at the highest level of professional excellence for their legal expertise, communication skills, and ethical standards, and is awarded to less than 5% of all lawyers in the United States. This rating is reserved for lawyers who are recognized by his or her peers as having achieved preeminent legal ability, characterized by adherence to professional standards of conduct and ethics, reliability, diligence and other criteria relevant to the discharge of professional responsibilities.

AV Preeminent® is a Certification Marks used under license in accordance with the Martindale-Hubbell® certification procedures, standards and policies.

The Art of Inherited Wealth: How to Raise Resourceful Beneficiaries

Photo by Moose, Pexels Images

Photo by Moose, Pexels Images


It's every parent's dilemma:  how to provide financial security for a child without compromising his or her industry and ambition.  We've all heard stories of children whose drive or sense of accomplishment was ruined by an inheritance.  An unduly restrictive approach, on the other hand, may foster a lack of confidence or hesitation in pursuing opportunities that life presents.   How can parents enhance our children’s chances of becoming independent, self-sufficient adults? 

The Goal: Encouraging Self-Efficacy 

Parents aspire for our children to become resourceful adults with high self-esteem.  To help them reach that goal, we strive to motivate children to set goals, overcome challenges, and accept responsibility for their successes and failures.   This task is a dynamic one:  we cajole, challenge and celebrate our children’s efforts, while seeking to share wisdom and perspective gained in our own lifetimes.  If successful, our children take experiences we share and adapt them to their own circumstances, becoming better prepared to solve problems they encounter on their own. 

How To Nurture Self-Efficacy When You’re Not There
 
A child's perception of his or her ability to control outcomes in life has been shown to be a far better predictor of career selection and success than ability, preparation, achievement or level of interest.  A high sense of self-efficacy also contributes significantly to academic achievement, resourcefulness, creativity and intellectual development.  

Rather than rewarding or punishing specific behaviors, most parents aspire to raise children who are poised, confident and ambitious.  Unfortunately, the traditional approach to structuring an inheritance is not well suited to nurture these qualities.  Instead, the child (or his or her guardian) receives a regular stipend from a financial institution with whom the child has no personal relationship.  Children who grow up in this environment tend to have little understanding of the underlying effort that makes their prosperity possible.  Financial dependency on an impersonal trustee tends to foster a passive, consumption-oriented attitude, rather than motivating the child- beneficiary to take initiative or responsibility for the management of his or her own resources. 

The Solution:  An Incentive Trust 

A well-conceived estate plan can encourage your child to participate in managing his or her inheritance, with the benefit of teaching your child to take responsibility for his or her own needs rather than living from trust distribution to distribution.  Contrast the lessons learned by a traditional beneficiary who typically receives little information about the trust’s purpose and is encouraged to rely on others’ decisions about its management with the experience of a beneficiary who is expected to participate in management decisions, accept responsibility for their success and failures, and to set goals under the guidance of a trusted family member or friend who serves as the child's mentor.

 To foster an environment where your child is encouraged to realize his or her full potential, your Will or Revocable Trust should: 

1.    Encourage your child to achieve goals that he or she helps to select. These goals should require your child to invest his or her time, discipline, attention, focus, talent and effort over time. 

2.    Not unduly insulate your child from life's challenges.  As soon as he or she is capable (e.g., upon completion of his or her secondary education), your child should be given a meaningful role in managing the trust’s resources.  Encouraging your child to become actively involved in the management of his or her trust not only teaches responsibility, but can also provide an invaluable education in investment choices, the selection and evaluation of professional advisors, and develop a long-term perspective in financial stewardship that will serve your child well in his or her lifetime. 

3.    Provide for a gradual transition of responsibility and authority from the trustee to your child between the ages of 22 and 40. Studies have demonstrated that these are the critical years when children have the greatest need for economic assistance, but also are most vulnerable to the potential for an inheritance to impair their own development into productive, responsible adults. 

4.    Appoint a trustee who shares your key values, has excellent communication skills, and can serve as an effective mentor for your child.   The trust should encourage your child to work collaboratively with the trustee in developing investment goals for the trust, and actively to participate in periodic reviews and revision of these guidelines. 


Encouraging our children to grow up to become independent, productive, resilient and resourceful adults with high self-esteem is an important goal of any parent's estate plan. A thoughtful and well-conceived estate plan can foster an environment in which your child can be encouraged to reach his or her full potential. 

John Provo advises business executives, individuals and family offices with respect to sophisticated wealth management and transfer strategies, charitable giving and contested matters.  John has been a member of the American College of Trust and Estate Counsel since 1994. 

AV Preeminent® is a certification mark used under license in accordance with the Martindale-Hubbell® certification procedures, standards and policies.