My mother-in-law spent her last 39 months in a nursing home that costs her over $8,000 per month. Think about the costs. 39 months × $8,000 equals $312,000. How would this situation affect your family? I have personal experience of being in the nursing home for a month, then spending another month in an assistant living facility. The cost was over $5,200 out of pocket for the month I stayed in assistant living. Thank God every morning and evening that I am alive and well. Life has its way of throwing curveballs at us but we must still get up to the plate and bat. Another Real-Life Example: Back in 2006, I had a client whose wife had recently passed away and had him promise her that he would give their little country church $500,000 upon his death. He was concerned about doing so for many reasons. $500k can be a lot of temptation for some people to misuse. He came to me with the question of what the best way would be to accomplish what she wanted, and yet still keep control of his money, as he had heard me preach over the years to always be in control of your money. At the time, my fixed indexed annuities were giving him a 10% bonus on all money deposited. So, I shared with him how a Charitable Remainder Unit Trust (CRUT) could be the answer he was looking for. I had him bring me $454,550 to deposit in an annuity with the 10% bonus. We were able to start the CRUT with $500,005 because of the bonus. He was the income beneficiary, meaning he could withdraw up to 10% per year, if needed. He passed away in 2017. Prior to his death he had withdrawn over $226,000 as income, and the account balance on the day that he died was over $619,000. He never had to worry about losing money in the market, paying commissions, or paying management fees. His family controlled the CRUT after his death with instructions to give her church 10% each year until the amount distributed to the church was $500,000 tax free. The balance could be distributed to the family.
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