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90% of Trusts Fail to Properly Provide for Survivors; Top Ten Errors
One commentator suggests that, of the 4 million trusts established each year, 90% fail to properly provide for the surviving spouse and children. That's because the grantor was unaware of important options to include in their trust documents. These are the rights in the trust:
- To state the annual income that the surviving spouse is to receive;
- To provide how funds are to be invested;
- To change the state controlling the trust;
- To provide for travel and living expenses;
- For the spouse to obtain an additional sum per year for unforeseen expenses;
- To provide for appropriate residential needs;
- To provide funds for the children;
- To change the method of payment to the heirs;
- To change the share each heir will receive; and
- To exercise intelligent judgment in the distribution of trust assets.
Source: Investment News, July 17, 2000
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