WealthManagement.com
Jul 01, 2015
Sometimes, it can be incredibly useful to have another arrow in your planning
quiver. Consider the following:
• A trust is set up to provide for your client’s surviving spouse, her third
husband. On his death, whatever assets remain in the trust pass to your client’s
children from her first marriage. There’s a tension between your client’s surviving
husband who wants as much cash flow as possible, and the children who are
razor focused on getting as much appreciation in the trust assets as possible, to
maximize their inheritance. How can a trustee satisfy everyone (or perhaps
equally and reasonably dissatisfy everyone)?
• Your client’s ne’er-do-well son has never kept a job. She wants to leave him a
trust but needs to make sure the trust will last for his lifetime which could be
another 40+ years. How can the trustee distribute funds to him so that the well
won’t run dry? Is there an approach you can mandate so that her son can’t unduly
badger the trustee into giving more and thereby undermining his future financial
security?
For both of these and other circumstances, a financial concept known as a unitrust
might offer a practical solution to reconcile seemingly difficult competing financial
goals.
Read his commentary here.
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