Chapter 11

Giving Outright, via Loans, or in Trust?

If you have thought this far about how to give well to family members, you have probably come up against the big question: What about gifts in trust? There is no more commonly recommended way of giving large amounts than through trusts. “Don’t put your trust in money,” goes the old saying, “but put your money in trust.” And there is probably no way of giving that causes parents and grandparents more worries than trusts. Trust babies or trustafarians are just two common nightmares. Rather than promote freedom, gifts in trust can make givers feel locked into a plan they come to regret and can make recipients feel locked out of enjoying the gift as responsible adults. Trust means anything but, ...

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