John Carter III grew up privileged in a small
Southern town. He went to the best private schools, played
on the varsity golf team in high school, and appeared to be heading
down a path of success in life. The local police picked him up one
night when he had pulled over to the side of the road and was slumped
over the wheel. After the police administered drug and alcohol tests,
John admits to having a serious alcohol and drug problem. His worried
parents called the financial advisor to try to figure out what to
do with John’s trust funds. Should they spend whatever money
John has to keep him out of jail? Should they put him into a rehabilitation
facility? Should they establish an incentive trust to keep sizable
assets away from John for some period of time?
Two women have been in a loving relationship
for 20 years that is not recognized as a legal marriage in most
states. Jackie is age 67 and battling cancer for the
second time. Her partner, Alice, is only 62 and still working in
order to maximize her pension/annuity retirement benefits. Neither
woman has any children so they would want to leave all individual
assets to the remaining partner. How do these long-time companions
achieve their financial goals when battling medical problems and
no clear laws on “marital” property disposition have been
established? Can they use pour-over trusts within their Wills combined
with a strategy for titling jointly owned real property to minimize
probate costs and estate taxes?
Vickie and Myron grew up on the south side of
Chicago. They have been married for 20 years and have
two children. Vickie’s mom taught in a public school in Chicago
and saved her money to help Vickie get a college education. Vickie
went on to get her PHD while raising a family and working full time.
How does Vickie’s mom make sure her grandchildren have the
same value on education that she passed down to her daughter? Perhaps
a generation skipping trust will continue this family tradition.
Sharyl’s 93 year old mom passed away last week. She grew up on the family farm in rural Colorado. Mrs. Woods briefly left the family farm for four years of college at the local State University. She met her future husband there and brought him home to the farm to help run it. They had three children and lived on the farm until 10 years ago. When she sold the family farm and moved into a retirement home. She was active in her church, sang in the choir and participated in many community activities right until a bad fall three months ago. She did not physically recover and soon passed away. She had only one living sister at the time of her death and that sister needed more income than she had at that time. How can Mrs. Woods' estate continue to help provide her living sister with income for the rest of her life and then devise the remainder to the local Hospice? |
