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| A MOTHER'S THREE CHILDREN IN ALCOHOLICS ANONYMOUS SOURCE: RECER EXPERIENCE A Baltimore couple came in to see me for their personal estate planning session. Married late in life, each partner had children by previous marriages. The lady said, "Mr. Recer, I have four children and three of them are in Alcoholics Anonymous." I wanted to be sure that she didn't leave anything "outright" to her alcoholic children. So, I showed her how to create a trust and fund it. At her death, a trust could benefit her husband for his life. At his death, it would change its nature; but, would remain in effect ... and would benefit her children with a stream of income. It would not give anything "outright" to them until the youngest of them reached age 65. To show exactly how we do this. Let me explain. At present, we create a Living Revocable Trust and place her assets into it. At her death, it becomes a By-Pass Trust and benefits her husband for his life. At his death, it becomes a Spendthrift Trust and stays in effect for many years, paying out only income and other benefits; it does not pay out the principal. |
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