Does your entire family have a “spirit of philanthropy?” Will your children follow in your footsteps in support of causes that bless the lives of others? Children do not automatically inherit the values of their parents. Involving your children in philanthropy can help them develop a love for helping and blessing people less fortunate than themselves.
Your legacy is much more than just money. It is what you have learned over a lifetime that you want to share with your children and grandchildren. It is the values, the ethics, the lessons you want to teach them, and the love you want to continue to give long after your passing. Planned giving is a way to help you accomplish these goals by pairing your philosophy and values with your financial means. Many times it seem like these two areas work against each other, but with proper planning, financial means can be used to reinforce the lessons you have worked so hard to share with your family.
At Philanthropies, we believe that planned giving is a way to share your personal values with your loved ones and fellow beings while wisely stewarding your earthly treasure. Our goal is to provide assistance to you and your professional advisors (attorneys, accountants, and financial planners) in situations where a charitable gift is part of your overall estate and financial plan.
Can Wealth Spoil Your Children?
Children don’t always fully understand the sacrifices and hard work that went into creating a comfortable or wealthy lifestyle. While some will pick up where the parents left off, others may struggle to manage the inheritance and may even suffer serious consequences that may be financial, legal, health-related, or personal in nature.
A properly administered gift plan can involve children early in the process of making charitable decisions, and can provide a system of checks and balances to prevent mismanagement or self-destructive behavior in the administration of funds. While this is more of a concern for larger estates, families of so-called “middle-class” means can use gift planning tools to involve their children in charitable giving in ways that will help them learn to value helping others less fortunate than themselves. For example, a Donor Advised Fund can be set up with as little a $5,000.
Not a "Magic Bullet"
Gift planning is not a “magic bullet” that will keep your children out of trouble after you are gone, but a well-thought out plan, based on your family goals and values, can provide a more optimal opportunity for the success of future generations.
Related Video: Donor Advised Fund
Donor advised funds (DAFs) have become a popular way of supporting charities while exercising more control and input than is available with an outright gift.
"That which I have I can easily give you, but that which I am you must obtain for yourself."
- Elder Dallin H. Oaks, "The Challenge to Become," October 2000 General Conference, The Church of Jesus Christ of Latter-day Saints