Hi guys,
The question asks for a cost effective way to provide money to the grandchildren. I chose c thinking that annuities would be cheaper than trusts as it’s my understanding that trusts cost quite a bit to maintain (annual maintenance, paying the trustees etc) compared to annuity but the answer says otherwise. Any thoughts? Thanks
I think they have in mind the scheme whereas you skip one generation, so that estate is not taxed twice. Caveat: in certain jurisdictions might not be legal.
don’t think you’re supposed to assume that trust maintenance is costly unless it’s stated explicitly in the curriculum (which is not afaik). but I think this is just a badly written question.
I agree,it becomes a toss up. Thanks guys.