𝗛𝘂𝗺𝗮𝗻-𝗰𝗲𝗻𝘁𝗿𝗲𝗱 𝗜𝗻𝗵𝗲𝗿𝗶𝘁𝗮𝗻𝗰𝗲 & 𝗕𝗲𝗻𝗲𝗳𝗶𝗰𝗶𝗮𝗿𝘆 𝗪𝗲𝗹𝗹-𝗯𝗲𝗶𝗻𝗴 𝗧𝗿𝘂𝘀𝘁𝘀
Human-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, it’s an ethos that emphasises human dignity and personhood, in a world that reduces human beings to mere factors of production and consumption
𝗧𝗵𝗲 𝗗𝗲𝗹𝗮𝘄𝗮𝗿𝗲 𝗕𝗲𝗻𝗲𝗳𝗶𝗰𝗶𝗮𝗿𝘆 𝗪𝗲𝗹𝗹-𝗯𝗲𝗶𝗻𝗴 𝗧𝗿𝘂𝘀𝘁
The time for a human-centred approach to inheritance and family wealth is here.
A trust is a legal arrangement where one party (a “trustee”) holds and manages assets for the benefit of another (a “beneficiary”), 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 — safeguarding wealth or minimising taxes, often at the expense of beneficiaries’ 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 beneficiaries’ 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:
Get Bernard Ezekiel Chung’s stories in your inbox
Join Medium for free to get updates from this writer.
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 family’s history and values to foster identity and purpose
3. Well-Being: Providing support to ensure beneficiaries can navigate the psychological aspects of wealth
𝗣𝗼𝘄𝗲𝗿𝗲𝗱 𝗯𝘆 𝗣𝗼𝘀𝗶𝘁𝗶𝘃𝗲 𝗣𝘀𝘆𝗰𝗵𝗼𝗹𝗼𝗴𝘆
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 what’s wrong, it looks at how to grow in what’s 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.
𝗧𝗵𝗲 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆
Delaware’s precedent for human-centered family trusts is bold and timely.
People matter; their trusts should reflect that.
While Singapore doesn’t have equivalent trust legislation, ours is flexible enough to permit something similar to the Beneficiary Well-being Trust.
In fact, I have — for a while now — 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?
