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Tandem Trust
The Life’s Plan Tandem Trust combines the family’s ability to benefit from Life’s Plan Inc. pooled trusts with the family’s desire to privately hold and control their own individual irrevocable supplemental needs trust.
How Tandem Trusts Work
- A family estate either has or sets up an irrevocable private Third Party or Payback (D4A) supplemental needs trust.
- The trustee of the private trust has the power to feed funds to a subordinate trust.
- Life’sPlan, Inc. pooled trusts can be the subordinate trust.
- A Private Third Party Supplemental Trust (feeder trust) can transfer funds to Life’s Plan Inc. Third Party Pooled Supplemental Trust (subordinate trust).
- A Private Payback (D4A) Trust (feeder trust) can transfer funds to Life’s Plan Inc. Self Funded Pooled Payback (D4C) Trust (subordinate trust).
- Life’s Plan Inc. trust does all the management of expenditure and investment of the funds transferred to Life’s Plan Inc. Pooled Third Party Supplemental Trust (subordinate trust) and Pooled Payback (D4C) Trust (subordinate trust).
- As funds in the Life’s Plan Inc. pooled subordinate trust decrease due to expenditures to meet the supplemental needs of the beneficiary, the private feeder trust transfers more funds to Life’s Plan Inc. pooled subordinate trust.
Main Advantages for the Private (Feeder) Trust
- The Private Trust no longer needs to manage expenditures for the supplemental needs of the beneficiary, unless they so choose. Professional oversight of expenditures for the supplemental needs of the beneficiary are done with funds transferred from the feeder trust to the Life’s Plan Inc. pooled subordinate trust.
- The Private Trust still controls the investments of the private feeder trust.
- The Private Trust completely controls the remainder funds in the private feeder trust.
- Only the balance amount in the Life’s Plan Inc. subordinate trust is subject to the remainder requirements of the subordinate trust.
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