07-12-2021, 02:59 AM
Legality of perpetual trusts?
<!-- SC_OFF --><div class="md"><p>Long story short, it's half idle curiosity, half planning.</p> <p>Perpetual trusts are illegal in most states. But would the following conditions make it legal?</p> <p>X amount is invested. Recipient/s receive the 75% of the interest, but can't touch the principal. Every Y# of years the executor changes but the original conditions persist. After Y+5, the executor changes to the next executor. After Y+5 from that point it transfers back. Ad infinitum. </p> <p>Could you theoretically just bounce it back and forth between two charities to distribute the funds while taking some for themselves while it accrued value? It's going to be at least 30 years before I have to set this up, but I'm curious if that's a thing that can be done now.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/BGSUartist"> /u/BGSUartist </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/oi7m5w/legality_of_perpetual_trusts/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/oi7m5w/legality_of_perpetual_trusts/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Long story short, it's half idle curiosity, half planning.</p> <p>Perpetual trusts are illegal in most states. But would the following conditions make it legal?</p> <p>X amount is invested. Recipient/s receive the 75% of the interest, but can't touch the principal. Every Y# of years the executor changes but the original conditions persist. After Y+5, the executor changes to the next executor. After Y+5 from that point it transfers back. Ad infinitum. </p> <p>Could you theoretically just bounce it back and forth between two charities to distribute the funds while taking some for themselves while it accrued value? It's going to be at least 30 years before I have to set this up, but I'm curious if that's a thing that can be done now.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/BGSUartist"> /u/BGSUartist </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/oi7m5w/legality_of_perpetual_trusts/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/oi7m5w/legality_of_perpetual_trusts/">[comments]</a></span>Kind Regards R