Estate Finance Family Tax Plan Question Mr. Brady comes to you to review his estate...
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Estate Finance Family Tax Plan Question
Mr. Brady comes to you to review his estate plan. Under Mr. Brady's current will, Mr. Brady leaves the entirety of his estate to the Michael P. Brady trust with Tenleytown Trust Company as trustee. Under the terms of the trust, the trust pays all income to his three sons, Greg, Peter and Bobby for 20 years. The trustee may at its discretion distribute principal to provide for the health, education, maintenance and support of the income beneficiaries. At the end of the expiration of 20 years, the trust terminates and the remainder is distributed as follows:
20% to each of Greg, Peter and Bobby and
40% to the United Way, a tax-exempt charitable organization under 501(c)(3).
Mr. Brady currently has approximately $50 million of assets.
Based on the information above, please answer the following questions:
Would you advise Mr. Brady to revise his estate plan? If so how?
As his testamentary trust is currently drafted, will Mr. Brady's estate receive any charitable deduction?
What questions might you ask Mr. Brady in deciding whether or how to revise his estate plan?
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