Give it Twice Trust

While visiting our website, June came across the idea of a "give it twice" trust. She contacted Marisa at Phoenix Theatre for more information. She 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 charity.

Marisa told June that she had the ability to use her $800,000 estate to do something significant for both family and charity. 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.

Marisa 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 charity. In addition, by using her IRA, June could save on income tax because the special trust is tax exempt.