Your investing approach seems appropriate to me. Your BIL's Supplemental Needs Trust should be more than sufficient to last beyond his lifetime and managing it for growth feels right for the person who will ultimately inherit the balance left when your BIL dies.
If your BIL's supplemental needs are only $10-15K per year, you can set it up as described and withdraw from the cash portion annually for the next ten years. Our 31 year-old daughter has a similar trust and her supplemental needs also fall into that range. We use Schwab's retirement target 2030 fund as it gives us our desired asset mix for her and is even simpler since her trust has only one holding.
Given the significant size of the trust, you may want to consider larger annual expenditures for your BIL's next few years. Is there anything that would be on his bucket list that he could do with you and/or your husband? Given his likely need for a travel companion, I would think the trust assets could be appropriately used to pay for a companion's reasonable expenses, as an example. He is very lucky that his mother was able to provide so well for him.
Best,
Kevin
If your BIL's supplemental needs are only $10-15K per year, you can set it up as described and withdraw from the cash portion annually for the next ten years. Our 31 year-old daughter has a similar trust and her supplemental needs also fall into that range. We use Schwab's retirement target 2030 fund as it gives us our desired asset mix for her and is even simpler since her trust has only one holding.
Given the significant size of the trust, you may want to consider larger annual expenditures for your BIL's next few years. Is there anything that would be on his bucket list that he could do with you and/or your husband? Given his likely need for a travel companion, I would think the trust assets could be appropriately used to pay for a companion's reasonable expenses, as an example. He is very lucky that his mother was able to provide so well for him.
Best,
Kevin
Statistics: Posted by CFOKevin — Mon Dec 18, 2023 11:45 pm