Diana, Princess of Wales was known for her kindness, decency, substantial charitable work, and her devotion to her children. Her untimely death was a reminder to us all that life can be fragile, but her legacy of good works lives on.
Even royals have to worry about estate planning issues. Fortunately, Princess Diana established a very well-tailored estate plan to care for her children in the event of her death. This article shows how, through the use of basic testamentary trusts, she provided income for her children until their 30th birthdays, and then turned over full control of the property to them.
Testamentary trusts for children are a standard part of many American estate plans as well, and are typically not overly difficult to administer. If you read the article about Princess Diana’s estate plan, you may notice the reference to owing Capital Gains Tax, which can be avoided in the United States under the IRS loophole known as the automatic step-up in basis, covered by a prior blog post.
Consider how Princess Diana’s careful estate planning provided for her children after her death, and ensure your family is also protected in the event of a tragedy.