With some trusts, you can plan opportunities for gifting. You can gift the funds the money to the next generation, but still have control of it. 

The problem with gifting is you don’t want to break up such a sizeable chunk of money because you can manage it well. When it is a large amount, you have asset allocation, minimize risk, buy portfolios and buy large stocks. If the money is broken up, people tend to buy treasury bills and series E bonds which can only earn 4-5 % which isn’t really a good method of minimizing risk and maximizing return.

 

What needs to be done is give the children (beneficiary’s) gifts while maintaining control- so we set up a Limited Partnership. Each child gets a percentage, choose a percentage, and don’t give a tangible amount due to the effect of receiving the funds. Keep the funds within the Limited partnership structure. So we have a Limited Partnership for each child. 1 % of belongs to the children while the rest belongs to the Husband/Wife/Living Trust- which is all completely tax free and transfers while you still have control as the funds that go the children are still in the account. The funds are still intact for the beneficiary’s, we gave them a tangible amount, which is where they own a portion but have no control. With this plan, you can invest the funds while still having protection.