How do I establish my legacy and give to charity for impact?

Whether your legacy will be your family and even your family values or it might be having a major impact on or establishing a non-profit organization that will provide a social benefit for hundreds of years, it is important to plan for it.  Just as in all other planning exercises, one has to consider the issue from multiple angles, including financial, emotional, operational, as well as demographic and geographic viewpoints.

Establishing a Charitable Remainder Trust has implications for income tax deductions as well as future income.  A deduction for income taxes will depend on the age of the donor and any other beneficiaries of the plan.  Income beneficiaries of the CRT will get income during their lives, while the principal beneficiaries will be provided the ultimate principal distribution which includes capital gains achieved during the investment life of the trust.  Weighing the fiduciary obligations of both types of beneficiaries is an important responsibility of the trustee(s).  Hartline has been involved in developing and maintaining access to a corporate trustee that can assist in such issues (or not, as is in the donor and beneficiary’s best interest) through National Advisor’s Trust Company, a national trust company capable of acting as trustee in any state.  Often a grantor will designate a family member as trustee, and it is helpful to have a corporate co-trustee in order to support that person, particularly if he/she has had little trust training.

Charitable intent is not something every client of ours has considered, initially.  Thinking about the distant future does not come naturally, so Hartline has assisted many clients in developing their legacies, like building financial support for a family second home that becomes the gathering place for multiple generations.  We have developed charitable trusts and ordinary trusts that support the well being of family members and their goals.  The object is to listen to what the family members are trying to achieve and providing multiple opportunities and higher probabilities of accomplishing the goals.

The ideas are often bubbling under the surface and it takes someone like the Hartline manager to bring the ideas to the surface and understand how they might be possible.  We have many contacts that are preferred providers of various services and products that can help, while not locking our clients into any particular provider of services such as legal, accounting, consulting, marketing, or planning.  Truly, each client is different and could not use a one-size-fits-all model as so many other firms have.  We ask the questions first and then bring the other resources to bear.