Nov 1, 2011 12:00 PM

The younger generation may have different ideas when it comes to philanthropic succession planning

By Douglas Moore

The best plans and intentions can be led astray by misconceptions based on erroneous assumptions, especially with philanthropic succession planning. Often, senior or same generation family members don't have a true understanding of one another's charitable interests, sense of time and financial commitments and passions. At the risk of stating the obvious, family members should candidly and honestly discuss these issues and then make informed, deliberate decisions as to the family's philanthropic legacy.

My clients, a charitably inclined husband and wife, had a combined net worth of approximately $60 million. Their two adult sons lived far from their parents and from one another. The clients regularly made direct donations, together with grants from their private foundation (PF), to various locally based charities. They had also made generous lifetime gifts to their sons. The couple's respective estate plans provided for additional dispositions to their sons and grandchildren. A significant percentage of the clients' combined estates would fund the existing PF at the survivor's death. The husband had been actively involved in the PF's administration, investments and grantmaking, while the wife's involvement was limited to grantmaking. The wife had deferred to her husband's decisions on the PF's investments and administration, so she was unaware of the time commitment and effort required to properly administer the PF. The sons weren't involved with the PF at all.

Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

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Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

E-Newsletter Signup

2011 Trust Glossary

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50 Years Ago This Month

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50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

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