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Planned Giving

Planned Giving
August 5, 2024

Less can be more: Charitable giving helps parents pass wealth to children

byInspiring Philanthropy

Wealthy clients are sometimes concerned that leaving millions of dollars, or even hundreds of thousands, to their children could backfire and hinder their kids’ ability and motivation to achieve financial independence.

A question many parents ask as they structure lifetime gifts and bequests to children in their financial and estate plans: How much is too much?

In addition to concerns about fostering entitlement and dependency, many parents are concerned that their children will miss out on the satisfaction of knowing they built wealth on their own. These parents believe that the challenges and struggles along the way will ultimately enrich their children’s lives with intangible benefits that are far greater than the obvious benefits that come with gifts or an inheritance of significant financial resources.

As you work with clients who feel this way, please reach out to the community foundation. Every day, our team works with families who are in this exact situation. We’ll help you evaluate strategies such as:

  • Establishing philanthropic components of an estate plan so that children receive only the amount that can pass to them free of estate tax, with the rest passing to a charity, such as a donor-advised fund at the community foundation.
  • Setting up a donor-advised fund at the community foundation to allow your clients to support favorite charities during their lifetimes, with the terms of the donor-advised fund providing that the children step in as successor advisors following the clients’ deaths.
  • As successor advisors to the donor-advised fund, the children can work with the community foundation to recommend grants to favorite charities, support interest areas pre-selected by their parents, or both. 

Many clients are attracted to this type of structure because not only could it avoid estate tax, but it also allows their children to stay involved with all of the family’s wealth, work together and keep sibling bonds strong, and get involved in the community. 

Please reach out to the community foundation team anytime. We look forward to exploring strategies to help your clients meet their financial and tax goals, as well as honor their wishes for children to live happy and productive lives.

The Legacy Society is composed of individuals who have provided for the Fremont Area Community Foundation as part of their planned gifts. These are special people who are dedicated to a better future for their community for years to come.

There are many different ways to become a member of the Legacy Society. Simply inform the Foundation of the type of gift you have chosen to leave. This may include cash, securities, life insurance, IRA, memorials or other bequests. Gifts may offer tax advantages. We advise consultation with your financial advisor or attorney.

Becoming a member of the FACF Legacy Society has many advantages:

  • Flexibility - Through the Foundation you can serve several charitable interests in one place.
  • Involvement - Donors can choose the level of involvement according to their preferences.
  • Naming Rights - Funds can be named as desired: for an individual, a family, a purpose or an organization.
  • Experience - The Foundation’s Board of Directors and staff are experienced with philanthropy in the Fremont area.
  • Tax Savings - The Fremont Area Community Foundation is a 501(c)(3) organization and qualifies as a public charity under federal tax law.
  • Permanence - The Foundation will continue to respond to community needs of the future as they evolve.

For more information about planned gifts through the Fremont Area Community Foundation, please contact Melissa Diers at 402-721-4252.

August 5, 2024

Less can be more: Charitable giving helps parents pass wealth to children

byInspiring Philanthropy

Wealthy clients are sometimes concerned that leaving millions of dollars, or even hundreds of thousands, to their children could backfire and hinder their kids’ ability and motivation to achieve financial independence.

A question many parents ask as they structure lifetime gifts and bequests to children in their financial and estate plans: How much is too much?

In addition to concerns about fostering entitlement and dependency, many parents are concerned that their children will miss out on the satisfaction of knowing they built wealth on their own. These parents believe that the challenges and struggles along the way will ultimately enrich their children’s lives with intangible benefits that are far greater than the obvious benefits that come with gifts or an inheritance of significant financial resources.

As you work with clients who feel this way, please reach out to the community foundation. Every day, our team works with families who are in this exact situation. We’ll help you evaluate strategies such as:

  • Establishing philanthropic components of an estate plan so that children receive only the amount that can pass to them free of estate tax, with the rest passing to a charity, such as a donor-advised fund at the community foundation.
  • Setting up a donor-advised fund at the community foundation to allow your clients to support favorite charities during their lifetimes, with the terms of the donor-advised fund providing that the children step in as successor advisors following the clients’ deaths.
  • As successor advisors to the donor-advised fund, the children can work with the community foundation to recommend grants to favorite charities, support interest areas pre-selected by their parents, or both. 

Many clients are attracted to this type of structure because not only could it avoid estate tax, but it also allows their children to stay involved with all of the family’s wealth, work together and keep sibling bonds strong, and get involved in the community. 

Please reach out to the community foundation team anytime. We look forward to exploring strategies to help your clients meet their financial and tax goals, as well as honor their wishes for children to live happy and productive lives.