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Financial Management

Making It Easier To Reach That Destination Using A Trust

Now that the holidays are behind us, we are already starting to look back with fondness at families traveling long distances to see and bond with one another. We may not all look forward to getting on an airplane, or car, or train, but we generally look forward to what’s at the end of that day of travel: the destination and family! Some of the time, the expense of traveling with family members limits some family members from participating, and so a parent or grandparent may help subsidize that cost. Is there a way to make it easier to reach that destination using a trust? Yes. A trust may be created with a travel provision to provide that the funds could only be utilized for travel by the beneficiaries. Here’s a fictionalized example: Jeannette’s parents came to America when she was a child. The family kept in close touch with their European relatives, and two of Jeannette’s children settled there. To facilitate family reunions, one year Jeannette announced that she would provide $25,000 every year to help defray travel expenses. Some years the gettogether was in the U.S., some years in Europe, but each year the $25,000 would cover the transatlantic airfares plus incidental expenses for the extended family. The reunions became so important to the family that Jeanette built them into her estate plan. At her death an irrevocable trust was created with the express purpose of funding family travels. Though it was one part of the overall plan, this additional provision would ensure that this tradition continues for many years to come.

Why not just give them the money, and let them decide? The largest reason to favor a trust over a direct gift is to direct the inheritance toward creating a specific experience or memories, and there are many ways travel can be a factor. Your impact would continue through the experiences directly tied to your wishes. Such experiences could include creating the opportunity for children to connect with their heritage or religion, study abroad, or even promote doing philanthropic work in another country. Another great use of leaving an inheritance for travel could be to provide for travel expenses if the family members are separated into different states or countries, designating a way to have family reunions, relieving the burden of paying for flights and tension that comes with it. Perhaps your beneficiaries are workaholics, and you want to make sure they reduce their anxiety levels and take a break so you designate places you’ve been inspired by—such as the Grand Canyon— and a fund that encourages them to share in that experience. Can the trust designate the use of funds toward other goals? That depends entirely on the values of the trust creator, and what is set forth in the terms of the trust. Trusts are created so that the desires and values of the creator are respected. Most trusts don’t have restrictions placed on them at all, but some suggest the funds can only be used for specific purposes to ensure they create positive change for the beneficiaries. This wouldn’t have to be travel—more conventional examples include categories such as education, or a home purchase. There are a variety of imaginative and appealing ways that one might be able to provide for one’s heirs. Once you decide on your goals and how best to achieve them using a trust, your estate planning attorney should be able to incorporate them into your overall estate plan.

Lifestyle & Money Management Trust & Estate Planning Investment Services Caring for and thoughtfully guiding our clients creates the strong, trusting relationships we have nurtured over the decades. That’s why so many people rely upon our independent company for wealth management and trust & estate services. True independence and understanding are at the core of our unique value proposition.

Our focus is where it should be…

Garden State Trust Company To learn how we can focus on you and your family, contact Adam Brower or Siobhan Connolly.

On You. On Your Family. On Your Future. 1886 Hinds Road • Suite 2 • Toms River, NJ 08753


The County Woman Magazine

732.255.5000 | March/April 2019

Profile for The County Woman

Ocean County Woman - March/April 2018  

The County Woman ™ is part of a nationally syndicated publication and has been around for over 31 years. There are over 371 other counties t...

Ocean County Woman - March/April 2018  

The County Woman ™ is part of a nationally syndicated publication and has been around for over 31 years. There are over 371 other counties t...