When George and Judy were planning their will, they wanted to share their assets with their children equally. But they were concerned that their youngest son would not be able to handle a large, lump sum inheritance.
Judy: Before my husband George passed away, we talked about our estate plans. We agreed that we wanted to treat each of our three children equally and that we wanted to make a donation to Oakland Symphony.
Judy's estate was worth $800,000. Her two oldest children are financially responsible. But she was afraid that if her youngest son received a lump sum cash inheritance, he would spend it right away.
With a "give it twice trust," Judy could transfer $400,000 from her IRA at death to the trust. Her children would each receive one-third of the income from the trust over 20 years in the form of annual payments. This would prevent her youngest son from squandering his inheritance and give him the chance to learn to save and invest. After 20 years, the trust would transfer the balance to Oakland Symphony. In addition, by using her IRA, Judy could save on income tax because the special trust is tax exempt.
Judy: This trust gave me the ability to help my children in a financially responsible way, and to make a sizable donation to Oakland Symphony. For me it was the right thing to do.
Is a give it twice trust right for you?
We welcome the opportunity to talk to you about how this trust could benefit your family. Please contact us
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