The old saying "you can't have your cake and eat it too" refers to situations where we want two good things at the same time but it isn't possible. Debbie and Larry felt this way when they were establishing their estate plan. They wanted to pass their estate to family, but they also had a place in their hearts for the Allentown Symphony Association.
Larry: We were really having a tough time determining how to best split our estate until we received a mailing from the Allentown Symphony. The mailer talked about testamentary charitable remainder trusts. The brochure really sparked our interest.
The testamentary charitable remainder trust was a new concept to Debbie and Larry.
Debbie: I didn't realize that there was a way we could stretch our assets so that we could accomplish leaving an inheritance to our kids and making a substantial gift to charity.
Larry and Debbie established a testamentary charitable trust as part of their estate plan. Their plan will transfer their retirement accounts to fund a trust after their lifetimes. This trust will provide a steady stream of payments to their children for 20 years. At the end of 20 years, the trust balance will be transferred to the Allentown Symphony Association.
Larry: We are thrilled that we are able to use our retirement accounts during our lives, and that when we no longer need them, we can use these savings to provide for our family and support the Allentown Symphony.
Retirement accounts, such as an IRA or 401(k), make great gifts to fund a testamentary charitable remainder trust. The trust will provide income to family while also benefiting charity. To learn more about this gift option, please give us a call.