Increase Productivity Highly efficient material handling equipment by Alliance
Using Family Trusts (CONT’D FROM PAGE 26)
Suzy has already said she wants to run the business, while her brother John feels the business should be sold and the assets distributed. “A trust can designate that Suzy will run the business, and that John will not be involved but will receive a certain amount of money monthly from the trust,” says Nicole N. Middendorf, CEO of Prosperwell Financial, Plymouth, Min- nesota ( prosperwell.com ). “And the trustee will make sure the provisions of the trust are carried out.” In a case like this one, says Middendorf, a trust is es- pecially valuable because it can mandate the disposition of assets at a time when emotions might run high. “Money often brings out greed,” she says. “People can be tempted to make decisions based on their own interests rather than on what makes sense for the future of the company and the family.” To Protect A Victim Of Addiction Bart and Susan want to avoid leaving a sudden windfall to their son Chet, who is struggling with a drug addiction. How can they make sure Chet is taken care of in the event of their deaths, while avoiding a waste of inherited assets? “A trust can designate that Chet receive a certain amount of money every month,” says Middendorf. “Or, to avoid funding the addiction a trust can pay his rent so he always has a roof over his head. The trust could even man- date that he pass a drug test to receive his monthly pay- ment.” A similar arrangement can also help out when the beneficiary might have a mental disability. To Control A Spendthrift Some people are just bad with money. Henry and Ida are afraid that their daughter Beverly will spend her inher- itance on fancy cars and travel. That’s why they decide to set up a “spendthrift trust” that will release funds only for expenses related to health, education, maintenance and support. “A spendthrift trust can be a valuable way to protect beneficiaries from spending all of their inheritance,” says Arlene Cogen, a certified financial planner and philan- thropic leadership consultant based in Portland, Oregon ( arlenecogen.com ). But she warns that it’s not a foolproof mechanism: “Bear in mind beneficiaries can be very cre- ative when it comes to petitioning trustees for health, education, maintenance and support. This can create an adversary relationship between the beneficiary and the trustee. One way around that is to create a trust which provides the individual with a set income stream, so they cannot keep knocking on a trustee’s door for money.” To Obviate Claims From An Estranged Spouse While Amy and Clark feel their son Andy is skilled enough to run the family business, they are concerned about his marriage to an estranged spouse. In the event of a divorce, will the spouse sue to obtain business assets? Scroggin offers this solution: Amy and Clark establish a trust that calls for Andy to be paid a salary for his work,
Inverting Top Feeder
500 kicks a minute!
• Robotic & Semi-automatic Loadformers • Palletizers
• Feeders • Stackers • Bundle breakers
Learn More! alliancellc.com
alliancellc.com | (509) 535-0356
CONTINUED ON PAGE 30
28
www.boardconvertingnews.com
November 21, 2022
Made with FlippingBook Digital Publishing Software