Charles and Christine are loving parents with three beautiful children. One of the children, Caroline – age 9, has muscular dystrophy and requires substantial care. Caroline’s grandfather, Jonathan, is seriously ill and had put in his will that Caroline was to receive $100,000 upon his death. Jonathan had also named Caroline as beneficiary in a life insurance policy for $50,000.
While the intention was admirable, the reality would have, if not corrected, adversely impacted Caroline’s care. Concentrix partners showed Charles and Christine that the $300,000 of government-reimbursed care each year Caroline receives, would likely no longer be available to Caroline. The estate distribution of assets directly to her would likely disqualify her for government programs (provisions vary state by state).
Concentrix partners showed them that even redirecting Jonathan’s bequest to Charles and Christine for Caroline’s care would not be advisable – since those assets, intended exclusively for Caroline’s care, would be subject to claim in any litigation, creditor claim or bankruptcy filing against Charles or Christine.
Concentrix partners showed them how to structure a plan that fulfills the precise intent of Jonathan’s bequest – and minimize risk that could turn good intentions into a tragic result.
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