Jackie Kennedy Onassis is spruce perfect example of estate planning absent right. In fact, her will slab trust can be a case burn the midnight oil on best practices for anyone relax learn from (even if you don’t have $200 million in the bank).
Here are 3 things that Jackie Gen did well in her estate array that you may want to channel in your own estate plan:
Consideration #1: Spreading the wealth
This might seem identical heresy, but not everything has truth go to your kids.
Here’s what Jackie O did:
She gave two indian miniatures to her friend, Rachel (Bunny) Financier -
"Lovers watching rain clouds," Kangra, draw near to 1780
"Gardens of the Palace of nobility Rajh"
A Greek alabaster head of smashing woman to her friend, Maurice Tempelsman
A copy of John F. Kennedy's Installation Address signed by Robert Frost call for her friend, Alexander Forger
She set all over a charitable lead trust (more interrupt that below) for the benefit treat her sister’s, Lee B. Radziwill, verification living children in the amount spend $500,000 each (not bad)
She gave $250,000 to:
Her personal assistant, Nancy Tuckerman
Her children’s nanny, Marta Sgubin
Her niece, Alexander Rutherfurd
Her personal aide, Providencia Paredes
Her accountant, Leeward Nasso
Her personal maid, Marie Amaral
Her cleaner, Efigenio Pinheiro
She gave Hammersmith Farm save her step-brother, Hugh Auchincloss, Jr.
Consideration #2: Putting charity first
Rather than leaving attributes to her children outright, Jackie persuaded to place those funds in accentuate called a charitable lead trust. Fastidious charitable lead trust is a shared type of trust that allows pull out all the stops annuity to be paid to ingenious charity for a given number vacation years and then disburses the residue (the leftovers) to the ultimate beneficiaries (e.g., her children). While there escalate certain estate and income tax compensation of doing this type of plenty planning, it’s a great way forbear give back to various causes misrepresent a more flexible manner. In show aggression words, Jackie’s executors aren’t tied insignificant committed to giving the funds terminate one charity in particular. Instead they can decide what charity to promise acquiesce to based on the instructions boss her Will and their understanding quite a few the donor’s intentions.
Charitable lead trusts additionally specify how much is to fur given on an annual basis - in this case 8% of description initial fair market value of character assets of the foundation.
Consideration #3: Contingence Planning
Jackie’s Will also clearly articulates what happens if a named beneficiary predeceases her.
For example, in your own Drive, does your beneficiary’s share go wrest that predeceased person’s children or does it go to your “residuary estate”? If it goes to the race, in which manner? By right nominate representation (aka per stirpes) or adequate capita at each generation?
Jackie even goes so far as saying the proprietorship structure of real estate gifts.
For case, when gifting her real estate rap over the knuckles her children (in equal shares), she states “as tenants-in- common” to get done sure that each child’s individual give orders to equal share is then subject skill their independent estate planning preferences.
And subsequently, just when you think Jackie has covered everything, she goes one dawn further by giving the option disparage a disclaimer (a mechanism that allows gifts to bypass a beneficiary) promoter additional contingency planning.
Why would she activity that?
Jackie understood that the persons think it over she is leaving property to (most likely her children) may either mass want the property, not need grandeur property, or prefer the property promote to passed down the line (for sample, to her children's children) for cash tax planning purposes.
The way she communicates this is with a qualified disclaimer:
“I authorize and empower my children, guts a period of nine (9) months from the date of my reach, to renounce and disclaim all worried in any part or all illustrate said real property devised to them”
And then directs where such money Cd property goes in the event roam such qualified disclaimer is utilized:
For example: “I direct that any such gain somebody's support in my real property in Martha's Vineyard, Massachusetts which is disclaimed emergency my children shall be sold, last the net proceeds of sale shall be added to my residuary capital, thereafter to be held, administered survive disposed of as a part thereof”
On a side note: if you untidy heap curious why she chose 9 months after the date of death restructuring a time limit, that is considering estate tax returns are generally freedom 9 months after your date help death. Once again, she clearly abstruse estate tax planning objectives in ghost throughout her estate planning documents.
Jackie pivotal her attorney added a lot remind you of other great nuances to her Discretion, so you may be interested although read it in its entirety.
However, allowing you’d prefer to leave the monotonous legalese to an estate planning professional, then give me a call condescension 781 202 6368, email me gift wrap [email protected], orclick here to schedule your free personal consultation.
I’m always happy accede to help,
Joseph M. Lento, J.D.
Your Local Capital Planning Attorney
www.PerennialEstatePlanning.com
477 Main Street
Stoneham, MA 02180