The gift planner told June that she had the ability to use her $800,000 estate to do something significant for both her family and the nonprofit. June was concerned because while her two oldest children are financially responsible, her youngest, Jim, "spends money like water." June was afraid that if Jim were to receive a lump sum cash inheritance, he would spend it right away.
The gift planner explained that the give it twice plan could be very helpful. June 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 Jim 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 nonprofit. In addition, by using her IRA, June could save on income tax because the special trust is tax exempt.
The give it twice trust is a popular option that allows you to transfer your IRA or other asset at death to fund a term of years charitable remainder unitrust.
The give it twice trust can be an invaluable part of any estate plan. We would welcome the opportunity to talk to you about how this trust could benefit your family. Please give us a call to discuss this important estate planning and giving strategy.
Please note: The information above is representative of a typical donor and may or may not be an actual donor to our organization. Since your benefits may be different, you may want to create a printable illustration of your income and tax benefits with the calculator on this page.
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