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As I said - off topic but there are a lot of bright folks here who know a great deal about financial matters. Can someone point to an instrument that could be purchased at the time of my death which would make annual payments over a period of ten years to an organization? The organization is a 501(c3) non-profit. Basically we want to spread a portion of our estate over a period of years - not in a single lump sum.

We understand this is possible with a Trust, but we are looking for an alternative to the bank's Trust Department.

Gordon
Atlanta
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Can someone point to an instrument that could be purchased at the time of my death which would make annual payments over a period of ten years to an organization? The organization is a 501(c3) non-profit. Basically we want to spread a portion of our estate over a period of years - not in a single lump sum.

What has your estate planning attorney suggested? It seems to me that with all the bright minds in the financial sector they could dream up something. I mean, look at credit default swaps.

I would suspect there's some sort of annuity your executor could buy which would pay out over a specified number of years. My question would be whether the price of that would be more than the cost of administering a trust.

Phil
Rule Your Retirement Home Fool
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Could the organization establish an endowment fund? You could then contribute now or make the fund a beneficiary in your will or possibly your trust.
http://nashville.about.com/library/blank/davesays/bldavesays...

Bob
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Phil I am in the process of redoing all my Terminal Documents (my name). The attorney told us annuities would not work for an organization - the are fine for individuals. The specific suggestion was a Donor Advised Fund administered by Schwab. The thing looks good on paper, but when one gets into the details it has problems. The real reason we want to spread the funds over a period of year is the organization is young and just as a person winning the lottery often makes less than idea choices, I want the organization to survive. It may be the bank's Trust department is the best/only option.

Gordon
Atlanta
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I have no relevant experience here, but I wonder whether it might be sufficient to leave instructions in your will to make a bequest of $X to charity payable in equal amounts over y years. Granted, that would obligate your executor to continue to manage your estate for that time period and wouldn't account for any income that might be earned on the bequest amount before it is transfered to the charity. As always, check with competent local legal counsel.

Ira
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