Establishing a private fund for heirs’ future charitable interests is indeed possible and growing in popularity, offering a unique blend of wealth transfer, philanthropic encouragement, and potential tax benefits. This strategy, often utilizing a Charitable Remainder Trust (CRT) or a Private Foundation, allows individuals like those Steve Bliss assists in Wildomar to direct funds towards causes their heirs care about, even after they are gone. It’s more than just leaving an inheritance; it’s shaping a legacy of giving. According to the National Philanthropic Trust, grantmaking from donor-advised funds (a related vehicle) totaled $97.79 billion in 2022, demonstrating the significant impact of this type of charitable planning.
What are the benefits of a Charitable Remainder Trust?
A Charitable Remainder Trust (CRT) offers a fascinating way to accomplish this goal. Essentially, you transfer assets into the trust, receive income from the trust for a set period or for life, and then the remaining assets are distributed to a designated charity or charities. This structure provides an immediate income tax deduction for the present value of the remainder interest, reducing your current tax liability. Further, any appreciation of the assets within the trust are not subject to capital gains taxes when distributed to charity. For example, if you donate appreciated stock worth $100,000, you avoid paying capital gains tax on the appreciation, and the stock can be used for charitable purposes. “It’s a way to benefit both yourself and the causes you believe in,” Steve Bliss often explains to clients considering this route.
Is a Private Foundation right for my family?
A Private Foundation provides a more direct level of control over charitable giving. Unlike a CRT which distributes assets to established charities, a Private Foundation *is* the charity, allowing your heirs to actively participate in grantmaking decisions and focus on specific causes that align with their values. However, Private Foundations come with more stringent regulations and reporting requirements. According to the IRS, maintaining tax-exempt status for a Private Foundation requires annual filings (Form 990-PF) and adherence to strict rules regarding self-dealing and excess business holdings. The initial setup and ongoing administrative costs can also be considerably higher than other options. We recently worked with a client, Sarah, who was passionate about funding arts education in her community. She wanted her children to continue this legacy but feared they wouldn’t have the time or expertise to manage a large charitable donation directly.
What happened when things went wrong for the Miller family?
The Miller family, deeply committed to environmental conservation, decided to leave a substantial inheritance to a local wildlife sanctuary. However, they did this through a simple will, without establishing a dedicated fund or trust. After the parents passed, the sanctuary underwent significant leadership changes and altered its focus, shifting away from the specific conservation efforts the Millers had championed. The inheritance, intended to protect a vital wetland area, was used for general operating expenses, and the wetland remained unprotected. This outcome left the Miller’s children feeling frustrated and disillusioned, questioning whether their parents’ wishes had truly been honored. “It was a painful reminder that simply leaving money to a charity isn’t enough,” one of the children confided. They had no legal recourse and felt powerless to redirect the funds towards their parents’ intended purpose. This is a common scenario that Steve Bliss works to avoid with his clients.
How did the Hanson family achieve their charitable goals?
The Hanson family, learning from the Miller’s experience, approached Steve Bliss to establish a Donor Advised Fund (DAF) specifically designated for environmental conservation. They funded the DAF with a combination of cash and appreciated stock, receiving an immediate income tax deduction. The DAF allowed their children to recommend grants to qualified environmental organizations each year, ensuring the funds were used for causes they cared about. Years later, the Hanson children were actively involved in selecting grant recipients, supporting projects that protected endangered species and restored degraded ecosystems. They were proud to carry on their parents’ legacy of environmental stewardship, knowing their contributions were making a tangible difference. “It’s not just about the money,” one of the Hanson children explained. “It’s about empowering us to continue their vision and make a positive impact on the world.” The Hanson’s proactively planned, and their legacy will continue for generations.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “Do I need an estate plan if I don’t have a lot of assets?” Or “How can joint ownership help avoid probate?” or “What types of property can go into a living trust? and even: “What is reaffirmation in bankruptcy and should I do it?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.