[WSBAPT] Annuity?
Felicia Value
felicia at skagitprobate.com
Sun Mar 18 15:59:18 PDT 2018
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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