Learning from Others, Using a Trust
Suppose a couple has lived comfortably, made charitable gifts and saved for retirement. The couple has a budget and has set financial goals, not only for their own supplemental retirement income but also for supplemental retirement income for relatives who may need their assistance.
In such a case, the couple could set up a specially designed trust, apart from their own defined retirement plan. If the couple dies before their relatives, the trust assets are used to provide a predetermined level of income (but no assets) to the relatives as long as the relatives are alive. When those they want to care for have died, all of the assets of the trust go to create endowment that will continue to provide income.
While trusts are a mystery to many people, the concept is simple involving five elements: a grantor, a corpus, a trustee(s), terms and contract. Such trusts can provide income in the case of inability or disability and can help protect the assets (corpus) from creditors, predators and probate, while serving to make a perpetual spiritual heritage. Can the Covenant College Foundation help you?
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