Charitable
Creating a charitable giving vehicle has become much more simplified and streamlined over the last decade, and many are using this giving technique to enhance family harmony and share values. One way this can be accomplished is by family members making an irrevocable tax-deductible contribution of cash, securities or other assets to a donor advised fund. The family advises the program sponsor of the fund how they would like their contributions invested. The family can make recommendations for grants to other nonprofit organization (virtually any qualified 501(c)(3) public charity). Families generally meet numerous times during the year to discuss their charitable passions and choices for grants. These meetings often encompass many generations, including young school-age children. We’ve found these experiences often provide the younger generations with their first experiences of charitable giving, while creating memories and a solid foundation to help them continue to carry out the family legacy.
In summary, there is a traditional saying, “It’s the thought, not the gift, that counts.” Grandparents can offer both for their families through purposeful gifting.
Amy M. Kane is senior wealth planner for U.S. Bank Private Wealth Management.