Legal Question in Wills and Trusts in Florida

Re: Tax-free college gift

She could establish, under her Will, a charitable remainder trust to a university, giving you the right, as her Executor, to name the university, with the trust also providing for your daughter's education during her lifetime. This would give her estate a charitable deduction, provide some income to your daughter (for a term of years or lifetime) and still cover the education. This is something that needs to be discussed with a tax attorney. You do not say how much money (total value) is involved. If she establishes it right and lives in Florida, there could be more than ample funds for your daughter, no estate taxes, and satisfy her charitable concerns as well. Remind her, as a Flordia resident she can leave over $1,500,000 without incurring Florida or federal estate taxes. If she creates a trust during her lifetime, places her assets in the trust while living, yet keeping control, she can also avoid probate costs which would be incurred if she merely did this by Will. I suggest you contact me directly to discuss this further.

Re: Tax-free college gift

Yes. There are a number of options available to her which may accomplish all of your objectives. For example, she may establish an irrevocable trust with income to her for life. Of course, all options would have to be considered with her particular needs in mind.

If you think that she may wish to consult with an attorney, she may contact me at (212) 971-1384.