Jun 2018 AFR: 3.4%
Blog Image

A Philanthropic Inheritance Plan for Young or Immature Family Members

My last post focused on a blended gift combining a charitable bequest and a family lead trust.  What if you are working with a donor/philanthropist who likes this concept, but doesn't want to give her children (or grandchildren) the lead trust inheritance until sometime after she passes away?  Perhaps the donor is concerned that the family beneficiaries are too young or will not be mature enough to manage such a significant inheritance at the time the donor passes (assuming the donor lives until life expectancy).

The solution is to combine the charitable bequest with a testamentary family lead trust funded at the donor's death.  The combination bequest plus testamentary lead trust would provide the following benefits:

-Continue the donor's legacy of lifetime giving through annual gifts made from the lead trust to benefit your charitable cause.

-Provide an inheritance of the trust's remaining assets (plus growth) to family at the end of the trust term -- at a time when family members have reached a level of maturity.

-Create estate tax savings, if the donor has a taxable estate (assuming the estate tax is not repealed).

-Leave a further bequest to your organization, to endow the donor's lifetime and lead trust gifts and create a perpetual legacy for the donor.

For more information on this gift blend or to create an illustration of this plan for your donor, please contact Crescendo and request your free trial of blended gifts software.

* Required Fields
Follow By Email

About Kristen Schultz Jaarda, JD, LLM

Kristen Schultz Jaarda

Kristen Schultz Jaarda is Executive Vice President of Crescendo Interactive, Inc. She specializes in charitable tax planning and online marketing for planned gifts. She is responsible for client education and leads Crescendo's marketing services and support team. She is a nationally recognized speaker, conducts seminars nationwide and is a principal faculty member of GiftCollege.

Kristen serves as a board member for the American Council on Gift Annuities (ACGA) and as a member of the ACGA Rates and State Regulations Committees, Editorial Advisory Board member for Planned Giving Today, Committee Member for the ABA Charitable Planning and Organization's Group, past Legislative Chair and a board member for the Partnership for Philanthropic Planning of Greater Los Angeles (PPP-LA), a member of the Ventura County Planned Giving Council and a committee member and volunteer for several California charities. She writes weekly for CrescendoTweet and her planned giving blog.

Previously, Kristen served as Counsel to the Assistant Secretary of Education in Washington, D.C. and was Oversight Counsel to the U.S. House Committee on the Judiciary. Prior to that, she worked in a public affairs law practice. Kristen graduated from UCLA School of Law where she was Law Review Editor. She completed her Tax LL.M. with honors at Loyola School of Law. Kristen is a member of the California State Bar, D.C. Bar and the Maryland State Bar.


Would you like to learn more about our services?
Please contact us for a free demonstration