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Establishing Income for Wife While Limiting Her Access to Principle

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Georgie

Guest
Hi,

A close friend has aging parents. Her father will probably die first, leaving her mother with an inheritance which she may well spend as soon as possible. The husband would like to make arrangements for his wife to be taken care of financially with a monthly income from investment of principle while protecting her from her own "spendthrift" ways by limiting her access to the investment capital. What's the best way to produce this outcome?




 


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EstateLawyer

Guest
This is a very common concern and very manageable. Father can set up a living trust giving his wife a right to periodic income and principal based on some ascertainable standard. The decision whether to distribute based on the standard will be made by the sucessor trustee(s), so the selection is very important. If the standard is carefully drafted, this money can also serve as a "credit shelter" trust, which can save estate taxes if their combined estate is over $675,000. There are a lot of issues here so see an experienced estate attorney in your state...what state are you in?
 
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Georgie

Guest
Thanks for the helpful reply. We're in Illinois.
Georgie
 
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EstateLawyer

Guest
No problem. As luck would have it, I am in Illinois also. If you are interested in the name of a qualifed attorney located in the Chicago suburbs, feel free to e-mail me at [email protected].
 

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