Evening star., 1951-06-12
Be Finance Wise
No Millions Are Needed

If property is held jointly it
vests in the survivor. This az
sounds deceptively sim
Pile. however. 1t frequently de-
feats the ultimate ownership wish
OF the parties, and it presents
complicated tax problems.
Taxation is an incentive to es-
tate planning. Of course. But, Miss
Chadwick stressed. the main pur-
pose is not to save taxes-it is to
distribute the wealth of a life
time, no matter how moderate, as
one wants it to be distributed.
One method Of achieving tax saw
Ing, for example, is by establish
ing an irrevocable trust in ones
lifetime. In some cases, and at
certain stages Of life. this would
be most unwise, however, tax saw
ings Notwithstanding.
There is such thing as a "liv-
ing trust" which can be estab-
lished and operated while the
maker is still alive, but need not
be irrevocable. The living trust
is a very valuable instrument"
Miss Chadwick explained. LAS an
instrument it's an old thing, but
only in comparatively recent years
has 1t been used to any extent"
Among its advantages are these:
A person has an opportunity to
see his estate in operation during
his lifetime, and become well &C
quainted with the bank personnel
who will be handling it. The trust
can be made as elastic as desired.
and can be changed or revoked at
the persons will. There is no
period OF waiting when the maker
dles. The provisions of the trust
simply continue to be carried out.
Another point-the living trust
Is less susceptible to attack on
the grounds Of undue influence or
mental incapacity than is a will.
The agency is another type of
arrangement that operates while
the maker is living. In this case.
tne maker does not give up title
to his holdings, but the bank as
slsts him in the administration of
his estate.
A life insurance trust provides
a way by which a person of mod
crate means can establish a legacy
for loved ones, or for a favorits
charity. Life insurance COM
panies today. Of course. have many
plans for the distribution Of the
deceased's policy. But a life in
surance trust makes it possible for
the money from the policy to be
left in the hands Of a trustee, who
can be vested with the right to
exercise discretionary power so
that the distribution Of the money
can be changed if the situation
demands it.
;, One costly mistake businessmen
and women make. when the chief
; assets Of their estate consist Of
their own or a family business, is
overlooking the necessity of leav-
ing sufficient assets that can be
easily turned into cash to take
care Of the so-called death
taxes" These persons should first
learn what these taxes will be.
Then provisions should be made
to pay them-through life insur-
ance, Government bonds, or cash
, in the bank.
). BY all means, provide for elas-
!, ITCHY IN your estate plan. Miss
:. Chadwick urges. In a fast-chang-
ing world. arrangements that once
seemed sound may, within a period
Of only five years, prove in
/. adequate for the beneficiary's
needs. II you are establishing q
, trust. select a trustee in whom
!, you have confidence. and give him
Sufficient discretion to make neces-
, lsary adjustments.
And review your plan. she coun-
sells. Every will can be changed,
and 1t is a wise person who sees
to 1t that his will is currently
: drawn we'll.
CThis is the second Of Tuesday series
on women and finance. Stories on in.
vestments and insurance will follsW.