A Legacy Fund: Making Smart Decisions Today for Future Giving

By Eric Kinaitis

A legacy fund at American Endowment Foundation (AEF) is a means by which you can use a donor advised fund to support charitable giving in the future for testamentary or estate planning purposes. A legacy fund would receive the gift of assets at a future date when a bequest or similar estate planning strategy takes effect.

Legacy funds provide the convenience of flexibility; a legacy fund is the ideal tool in the present to control future gifts.

Donors are interested in creating a legacy fund for some of the following reasons:

• To create a charitable legacy now but fund it at some point in the distant future
• To build a legacy of giving for their family
• To achieve the best tax benefits available
• To explore creative financial solutions for tailoring charitable giving in simple, smart and meaningful ways

Financial advisors like legacy funds because they can:

• Manage and custody the charitable assets of their clients
• In those instances where a legacy fund is part of an estate plan, advisors can build a bridge to the heirs of their current clients
• Be able to complete the legacy fund application now and lessen the end-of-year rush and panic that often exists when trying to determine with their client the value and type of assets to give

What assets can be used?

Almost any kind of asset can be provided, including cash, securities, an interest in real estate, a life insurance policy or tangible personal property. In those instances where a legacy fund is part of an estate plan, assets can be transferred via bequest. Sample bequest language is available on our website.

Learn more about the strength and flexibility that a legacy fund can offer. Download our Ebook " A Legacy Fund: Making Smart Decisions Today for Future Giving".

At American Endowment Foundation (AEF), we are happy to help you determine how a legacy fund can be of service. Please contact us or call at 1-888-966-8170 with any questions.