Residents of the Treasure Coast and other parts of Florida typically have a number of key considerations to address when it comes to the development of a comprehensive estate plan. Among them is the desire to develop a mechanism through which heirs will be responsible stewards of benefits bestowed upon them. One avenue to consider is the establishment of a private foundation.
Overview of a private foundation
A private foundation is a charitable organization that may not meet the requirements of a public charity as defined by applicable law. A private foundation does not seek funds from outside sources. This type of charitable entity typically is funded through a particular family or the specific estate of a deceased individual.
Benefits of establishing a private foundation
When involved in estate planning, there are a number of important benefits to be realized through the establishment of a private foundation:
- The ability to give funds to worthwhile organizations, programs and projects
- Tax advantages
- Control over assets
- Assisting heirs to become responsible stewards of their inheritance
Development of responsible financial stewardship
Many people are concerned about the ability of their heirs to exercise responsible stewardship over an inheritance. The establishment of a private foundation is one mechanism that has proven useful in this regard.
The creation of a private foundation gives beneficiaries the ability to hone the skills necessary to manage the affair of the organization. This is similar to what is needed to be responsible stewards of an inheritance they are slated to receive.