While visiting our website, Judy came across the idea of a "give it twice" trust. She contacted us for more information. We explained that a give it twice trust would allow her to first give income to children through the trust, and then the trust would later transfer the trust balance to the Allentown Symphony Association.
Judy: Before my husband Don 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 give to the Allentown Symphony Association.
We shared with Judy that she had the ability to use her $800,000 estate to do something significant for both family and the Allentown Symphony Association. Judy was concerned because while her two oldest children are financially responsible, her youngest, Tony, "spends money like water."
Judy was afraid that if Tony were to receive a lump sum cash inheritance, he would spend it right away. We explained that the give it twice plan could be very helpful. 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. Annual payments would prevent Tony from squandering his inheritance while giving him the chance to learn to save and invest. After 20 years, the trust balance would be transferred to the Allentown Symphony Association. In addition, by using her IRA, Judy could save on income tax because the special trust is tax exempt.
Judy: I was thrilled with the plan to establish a give it twice trust. The prospect of helping my children and the Allentown Symphony Association made me happy, and I knew it was the right thing to do.
The give it twice trust can be an invaluable part of any estate plan. We welcome the opportunity to talk to you about how this trust could benefit your family. Please contact us to discuss this important estate planning and giving strategy.
