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How trust administration can ease the national debt

On Behalf of | Sep 13, 2011 | Trust Administration

Our state is often associated with a specific type of money-related activity — gambling. However, if one retired teacher from our state has her way; Nevada may soon be associated with a very different money-related activity — charity. More specifically, donations made to the Bureau of the Public Debt, which could be described as a charity that provides for the whole nation.

As our public debt skyrockets, it could be anticipated that wealthy and affluent people may choose to name the Bureau as a beneficiary in their wills. The Bureau would then receive recurring donations from the estate trust, under general administration or trust administration.

Strange though it may sound, legislation was actually enacted around 50 years ago, in order to enable persons to donate money to the federal government. Under this law, the Bureau of the Public Debt captured nearly three million dollars in donations last year. Even for the high rollers who frequent our Nevada casinos, that’s a decent ‘chunk of change.’

Besides donating to the Bureau of the Public Debt herself, the retired Nevada teacher, also contacted dozens of friends to donate. If any of those individuals have a high-net-worth, they may benefit from considering trust administration that would allow for a portion of the periodic income to be donated to the Bureau in the effort to reduce public debt.

The Bureau would most certainly be grateful — “We send everybody a thank-you,” said its spokesperson. Indeed, the enabling legislation was written only after the discovery that a woman had willed some portion of her estate to the government.

Writing complex wills and executing them, and creating and administering trusts are considered highly technical processes. These processes fall under the probate legal practice area, of which trust administration is a subspecialty. People who may have decided it’s time to draft a will or set up a trust may find that an attorney who specialized in probate law might be able to offer information to help them get started.

Source: The Daily Caller, “Warren Buffett can give more money to the government if he wants to,” Alec Jacobs, Aug. 20, 2011