It is possible for a wealthy family to create a world that takes care of future generations as well as supporting charities, according to the Financial Advisor in "Charitable Inheritance Dilemmas."
With concern growing about the possible elimination of the estate tax, wealthy families are less focused on limiting the burden of the estate tax and looking to fairly divide the estates between their children and charitable institutions.
Parents want to leave their children enough assets to support their needs without giving so much that bad habits could form. Many people would also like to continue the charitable giving they have undertaken during their lifetimes. Finding an appropriate balance between these goals can be difficult.
The idea is relatively simple and something many families already do. Money can be left to children. The gift of giving to charity can also be left to them.
Money can be set aside and a donor advised fund created for each child to maintain. The children can then decide which charities should receive the funds. This is called a “charitable inheritance” and it is a good way to teach future generations about the importance of philanthropy.
As a highly rated and seasoned estate planning attorney in Northern California, we can guide you in meeting the estate planning goals that meet your unique circumstances. Contact us today and we'd be happy to help.
Reference: Financial Advisor (Feb. 1, 2017) "Charitable Inheritance Dilemmas."