Thursday, March 06, 2008

mini trust insurance/pension fund

instead of leaving one's estate
to children and grandchildren ( and maybe even the taxman )
how about putting it all into a mini trust fund
each member of the family would then be encouraged
to pay premiums into an individual insurance unit of the fund
small claims would come from each person's own unit
a large claim ( building burnt down ) would be met from the base fund
set up with the deceased's estate
each person could then choose to use his unit or not
this unit would then build up over time
at the end of, say, 40 years the remaining sum
could then be transferred to an individual pension unit
each person could also be encouraged
to make payments into a pension unit
at the end of each year remaining cash
could be used to purchase shares
each family member would be encouraged
to donate their estate, on death, to the mini fund

most insurance needs could be met by this fund
obviously, not car insurance and a few others

family mini trust fund
individual insurance unit
individual pension unit