Many people name their church as a beneficiary of their estate.
The problem is that more often than not, the church never gets its part of the inheritance.
In the case of a will, the executor or trustee never lets the church know that it was named as a beneficiary; the other beneficiaries spend all of the assets….that which was left to the church, too.
In the case of a testamentary trust, the trust reads that, say, family members can use the income created by the estate for life, then the corpus – the assets themselves – will pass to the church.
What happens here is that the trust says that the beneficiaries can invade the corpus, if necessary, to maintain their normal lifestyle.
Swoosh, there goes what the grantor intended for the church to get.
If you want to leave your church, your best friend, or the Saint Jude's Children's Cancer Hospital some money or property, you definitely want to make sure that your wishes are not circumvented.
There are ways to solve these problems and remove the temptations. And it is mechanical estate items like these that I address with my clients as part of their wealth coaching dynamic.
WILLIAM S. CHERRY & NO COMPANY
America's Financial Management Coach