Setting up a Trust

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
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Swampy
Posts: 804
Joined: Fri Aug 31, 2012 7:16 am
Location: Paradise

Setting up a Trust

Post by Swampy »

Interesting question posed by the lawyer - "What would happen to the estate if the entire immediate family was wiped out like in a plane crash?"

The thought of having the family getting wiped out crosses my mind every time we all board a jet, but honestly I had not given thought to who gets the loot after that.

As with all families, there are those that don't need the money, those that want it - but don't deserve a penny, those that are estranged, etc. I wouldn't mind helping a few struggling relatives out who look like they could use a hand up, but it would still leave quite a bit on the table for other things.

My wife thinks we should pick out a charitable cause near to our hearts. I'm more of the opinion that, in the event of an unlikely familial erasure, perhaps the trust should fund and start a new foundation based on what we really hold closest to our hearts. It's not an insignificant amount.

So, given a disaster, what would you like to be done with your nest egg? After all, you're not around, but you can still pull a few strings from beyond the grave.

I'm open to all reasonable suggestions.

Personally, I hope this is merely an academic exercise, live to a ripe old age and leave only the required minimum for our descendants.
If I have seen further, it was by standing on the shoulders of giants.
Grt2bOutdoors
Posts: 25625
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Setting up a Trust

Post by Grt2bOutdoors »

Provide a life estate for those you hold dear to your heart, at their demise, leave the remaining principle to the charities. What could be better than that?
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Gill
Posts: 8221
Joined: Sun Mar 04, 2007 7:38 pm
Location: Florida

Re: Setting up a Trust

Post by Gill »

Grt2bOutdoors wrote:Provide a life estate for those you hold dear to your heart, at their demise, leave the remaining principle to the charities. What could be better than that?
Leaving the principAL would be better. :happy
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
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