The Planning Need
If you would like to help Middlebury but do not wish to deny your children their inheritance, then consider a Middlebury Wealth Replacement Unitrust. It will provide a good income stream to you for life, tax free life insurance proceeds for your children, and a marvelous gift to Middlebury.
The Solution
The Middlebury Wealth Replacement Unitrust is written to benefit you for life. You gift some of the income from the unitrust to your children (or to the trustee of an irrevocable insurance trust) in order for the children (or the trustee) to purchase "second-to-die" life insurance on your lives. The life insurance replaces the wealth that eventually comes to Middlebury.
The Wealth Replacement Unitrust offers a range of benefits:
Provides a good income stream for life
No capital gains tax at the time the unitrust is funded
Assets in the unitrust grow tax free each year
Receive an income tax deduction for a portion of the gift
Annual gifts to children or trustee to purchase life insurance which replaces wealth going to the College The Wealth Replacement Unitrust attributes:
- Fixed percentage, determined by donor (usually 5%-7%)
- Quarterly distribution beginning immediately
- Income tax charitable deduction for a portion of the gift and capital gains benefits
- $100,000 minimum