How do various types of trusts meet different individual needs?
Mr. Jones was 43, a widower, and had three children, ages 11, 13 and 15. He wished to provide for their living expenses and college education, but knew they were too young to manage his portfolio of stocks. He created a testamentary trust (to take effect upon his death) that would manage his assets, pay the living expenses of the children, pay the college expenses of each child and then divide all remaining assets equally when the youngest child received a degree. Mr. and Mrs. Smith were both 76, and had accumulated a valuable portfolio of stocks and real estate through years of careful investment. Now, about to retire to a warm climate, the Smiths wanted freedom from investment matters. He established a living trust to manage his investments and pay them a monthly income based on their needs. Upon his death, the trust would continue in operation to provide for his wife’s needs. Mr. Livingston’s estate was valued at $800,000, but he learned that if he left it all to his wife outright,
