Beyond Distributions: Rethinking the Purpose of Trusts

What if a trust could do more than preserve wealth? What if it could actively support a beneficiary’s growth—financially, emotionally, even relationally? That’s the thinking behind Delaware’s “Beneficiary Well-Being Trust” statute. But you don’t have to live—or draft—in Delaware to embrace the broader idea: trusts should be structured not just to hold assets, but to develop the people those assets are meant to support. For attorney’s, planners, trustees, and families alike, there can be significant value derived from having a conversation around what a trust is really for.

Trusts Should Do More Than Distribute

Traditionally, trust design has focused on tax efficiency, asset protection, and providing for beneficiaries in a structured way. That’s still critical—but it’s not enough. The reality is that multigenerational wealth brings complexity. Beneficiaries may inherit substantial resources without ever having developed the skills—or the support systems—needed to manage them well. Some struggle with financial literacy. Others face the challenges of isolation, family disconnection, or the weight of unspoken expectations. Why not design trusts that help address these head-on?

Building “Well-Being” into the Trust Structure

You don’t need legislation to do this. The tools already exist. With careful drafting, planners can incorporate support for:

• Financial education and coaching tailored to each generation
• Family retreats and values-based conversations to build connection
• Emotional and relational support, where appropriate, to strengthen resilience

These aren’t just extras. They can be core to a trust’s long-term success. In our experience, the best way to protect wealth may not be legal structures—it may be prepared beneficiaries.

Practical Tips for Incorporating Well-Being into Your Planning

If you’re drafting or updating a trust and want to align it with these goals, consider:

• Including a purpose clause that highlights development, education, and family engagement as core values
• Authorizing the trustee (or a distribution adviser) to fund or facilitate financial literacy programs, coaching, or family meetings
• Defining terms like “family,” “support,” and “education” to ensure clarity and limit ambiguity
• Building in protection that allow for discretion, especially if beneficiaries aren’t ready or able to fully engage

This doesn’t mean every trust becomes a self-help seminar. It simply means aligning the structure of the trust with the outcomes families often say they want: more connection, more stewardship, more intention.

The Role of the Trustee Is Evolving—And That’s a Good Thing

Trustees are being asked to do more than follow distribution standards—They’re being asked to walk alongside families as they navigate complexity, change, and opportunity. That might mean recommending a financial coach, helping plan a values-based family retreat, or offering resources when a beneficiary is struggling to find direction. These aren’t burdens—they’re opportunities to make the trust more than just a financial tool. They’re a chance to make it a human one.

Final Thought

Whether or not your jurisdiction requires it, the idea of a “well-being trust” is worth taking consideration. Done well, it doesn’t just transfer wealth. It transfers wisdom, connection, and resilience. And that might be the greatest legacy of all.