[WSBAPT] Annuity?

[Felicia Value]

I agree with Paul.  The downside of an annuity is that the principal is 
no longer available.  Suppose the beneficiary had a catastrophic health 
crisis and a pile of money locked up beyond his reach?  A trust gives 
more realistic flexibility.


On 3/17/2018 3:15 PM, Paul Grant wrote:
> I would be very hesitant to make an investment demand of the remaining 
> funds - I would prefer to simply express what the goal of the funds 
> are for the final beneficiary:  ie: we desire for the successor 
> Trustee to invest all remaining assets into an investment vehicle that 
> will protect the principal, create a stable income source of not more 
> than $1,500 per month for the beneficiary, and not give control to the 
> beneficiary.... something that guides the trustee to know what the 
> goal is versus making an investment decision.  It really sounds like 
> they want a trust set up for the final beneficiary but are trying to 
> use an annuity instead; why not just make the final beneficiary the 
> new beneficiary of the children's trust under the same terms and 
> conditions but not limited to an outright distribution age?
>
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>
> Paul H. Grant - JD, LL.M
>
> Planning with Purpose, Inc
> Lynnwood, WA 98036
> 425-939-9948
> www.planningwithpurposeinc.com <http://www.planningwithpurposeinc.com>
>
> Estate Planning. Business Planning. Wealth Succession.
>
> On Sat, Mar 17, 2018 at 2:23 PM, Lisa E Schuchman 
> <lisa at lisaschuchman.com <mailto:lisa at lisaschuchman.com>> wrote:
>
>     I am working with clients on a will and testamentary trust. They
>     are leaving their estates to their minor children in the trust
>     (once they’re both dead).  If all of their children don’t survive
>     till the trust fully pays out, they want the trustee to use trust
>     assets to buy an annuity for the benefit of an adult relative who
>     doesn’t manage money well, with the rest of the assets to go
>     elsewhere.  I’m not an annuity expert, to put it mildly, and I
>     don’t know if this is realistic or a good idea.  Does anyone have
>     advice about this?
>
>     Thanks,
>
>     Lisa E. Schuchman
>
>     206-960-4212 <tel:%28206%29%20960-4212>
>
>     www.lisaschuchman.com <http://www.lisaschuchman.com>
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-- 
Felicia Value
Attorney at Law
PO Box 578/116 N. Third
La Conner,  WA 98257
(360) 466-2088
Felicia at skagitprobate.com

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