A Grateful Family Gives Back Through Estate Planning

Guest Post Written by Kirk Barrett, Wealth Advisor

If you’ll indulge me, I’d like to share a story about a client I had the privilege to help—not one about stock picking or compound interest, but a real-life experience that taught me as much about life (and giving) as any investment ever could.

The Toughest Investment: A Family Crisis and a Lifeline

COVID, as we all know, didn’t care about ZIP codes or portfolio balances. One of my clients, like so many families, had school-age children—one in grade school and another just starting middle school—when the world shut down. If you’re searching for a worse time in a young person’s life for a global pandemic to hit, you’ll come up empty. Add to that the rising tide of social media and its effects on kids (which, let’s be honest, none of us fully understood at the time), and you’ve got a recipe for real trouble.

It took my client and their spouse some time to recognize the toll all this was taking on their children’s well-being. Eventually, they faced a hard truth: their child needed professional help beyond what they could provide at home. And here’s a fact—Texas, for all its oil wells and tech startups, is a mental health desert. That’s a topic for another day, but suffice it to say, finding help felt like searching for water in the Sahara.

Fortunately, my client’s spouse was made of strong stuff. She became a relentless advocate for their child, and her determination led them to Skyland Trail. That organization changed the trajectory of their family. They helped their child get back on their feet—and while they still have their share of teenage drama (no investment offers guaranteed returns, after all), Skyland Trail was the lifeline they needed.

The Trust Tax Trap: Why Your Heirs Could Lose 37%

That experience got my client thinking about legacy—not just for their children, but also for the causes that helped them when they needed it most. Like many parents, my client set up a trust as part of their estate plan. Trusts are great tools, especially when you have young heirs who might not be ready to handle a sizable inheritance. But here’s the rub: trusts are taxed at some of the highest rates in the land. For 2026, a trust hits the top tax bracket (37%) after just $16,000 of income. That means Uncle Sam can take a big bite out of what you hope to leave behind, leaving less for your family.

At the same time, my client and their spouse have a handful of charities—like Skyland Trail—that are close to their hearts. They wanted to make sure those organizations received a meaningful gift as part of their legacy. The solution? A testamentary charitable remainder trust (TCRUT), sometimes called a “give-it-twice” trust.

Here’s how it works, in plain English: after my client and their spouse are gone, a portion of their estate—specifically, their IRAs—will go into the CRT. They chose their IRAs because they didn’t want the living trust to pay tax on the required minimum distributions (RMDs), and this approach allows the RMDs to be spread over a longer period. The TCRUT will provide income to their children for a set number of years or for their lifetimes. When that period ends, whatever remains goes to the charities they’ve chosen. The beauty of this approach is twofold: first, the assets in the CRT are removed from the trust’s taxable estate, thereby reducing the overall tax bill. Second, the eventual gift to charity ensures that the organizations that made a difference in their lives can continue their good work—maybe even helping another family like theirs.

In investing, we talk a lot about maximizing returns and minimizing taxes. I’ve come to see that generosity—planned and thoughtful—is a kind of investment, too, and it pays dividends you can’t always measure in dollars. If you’re looking for a way to make a lasting impact and provide for your loved ones, a testamentary charitable remainder trust is a tool worth considering. I help families use smart financial strategies like this to support what matters most to them, because sometimes the best returns aren’t found in the market, but in the lives you touch along the way.