Give it Twice Trust

While visiting her favorite charity's website, June came across the idea of a "give it twice" trust. She contacted the charity for more information. The charity's gift planner explained that a give it twice trust would allow her to first give income to children through the trust, and then later, the balance of the trust would transfer to charity.

The gift planner 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.

The gift planner explained that the give it twice plan could be very helpful. June could transfer $400,000 from her IRA to the trust after her lifetime. 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.

Is a give it twice trust right for you?

The give it twice trust can be an invaluable part of any estate plan. If you would like more information about how this trust could benefit your family, please contact us. We would be happy to assist you.

Please note: The name and image above are representative of a typical donor, not an actual donor. Since your benefits may be different, you may want to click here to personalize an example of your benefits.