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Pays income to Thomas for life. Thomas takes extra distributions to cover gifts to trusts for children. |
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Thomas makes gifts of after-tax income to trust to accumulate funds outside of estate. Gifts fund a $2 million insurance policy. |
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IRA pays income to Virginia for life. |
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After the second death, trust corpus including death benefits, pass to children. |
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Children have excess benefits from trust after taxes and expenses. |
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Future distributions from IRA passes to children for remainder of their lives. |
