Why might you go beyond simply designating a favorite charity in your will and consider
a more sophisticated planned giving vehicle?
Many individuals and families establish private foundations as a way to continue their legacies and give to causes that they and other family members care about. Through the work of a private foundation, you can also pass on values and skills to younger generations. With charitable trusts, you can provide for your favorite causes either during or after your lifetime, provide income for yourself and/or beneficiaries, and also
Michael will work patiently with you to evaluate the options and select one that best suits your preferences and situation. Three of the more common solutions are:
Establishing and Maintaining a Private Foundation
Make your foundation “dream” a reality. You don’t need to be a billionaire to create a foundation. A foundation can provide a charitable outlet for children and grandchildren. A foundation can also be useful for artists or celebrities to promote and maintain your legacy for decades to come. Drawing on his foundation experience and knowledge of tax-exempt and charitable foundation law, Michael J. Greenberg P.C. will help with the startup process, including:
Determining the optimal corporate and tax structure
Offering advice on operations, board, and management structure
Drafting and filing Articles of Incorporation
Drafting bylaws and conflict of interest policies
Submitting the IRS Exemption Application and representing you with the IRS and other government entities
Charitable Remainder Trusts
A Charitable Remainder Trust (CRT) can either last the lifetime of another beneficiary, or for a specified term (usually 20 years). At that point, any remaining value would go to your designated charitable organization. A CRT generally needs substantial assets to generate meaningful income during the life of the trust. Michael will walk you through how a CRT often also reduces income and estate taxes.
Charitable Lead Trusts
Often thought as the “inverse” of a CRT, a Charitable Lead Trust is an irrevocable trust designed to provide financial support to one or more charities for some time period, with the remaining assets eventually going to the donor's family members or other beneficiaries. Like a CRT, these trusts generally need substantial assets to generate meaningful income during their life.
Creating a foundation or charitable trust may be a better fit than you initially thought. Contact Michael Greenberg today to discover what makes sense for you and your family.