Legacy Funds and other handy tools for charitable clients who are planning ahead

Getting a jump on a future “to do” list item is a great feeling. The team at the Idaho Community Foundation can help you with your clients’ long-term charitable giving plans by putting the structures in place to receive bequests decades from now.

Consider a case where you’re finalizing an estate plan for a client who would like to leave bequests to multiple charitable organizations, but the identity of those specific organizations may be a moving target over the years because of the client’s evolving level of engagement with various charities as a donor, volunteer or board member.

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In other words, this client likely will want to make small changes to the estate plan’s provisions for charitable giving but leave everything else as is. For example, a client’s trust could be drafted to provide that 10% of the remaining estate be divided equally among five charities, which of course could be listed in the trust document. But what if, a few years from now, the client wants to add another charity to that list? Even a small change like this would require an amendment, which can be time-consuming for both attorney and client.?

Instead, the client’s trust document could name a fund at the Idaho Community Foundation as the beneficiary of 10% of the remaining estate. Then, the client can work with ICF to draft a fund agreement that lists the charities that will share the 10%. When the client wants to change charities on the list, the client can reach out to the community foundation and execute simple documentation of their updated intent. This process is fast and simple, and it allows clients to ensure that their bequests are in line with ever-changing needs in the community.?

In some cases, the client may not intend to use the fund during their lifetime. That’s perfectly fine; the community foundation can establish a Legacy agreement to sit dormant and receive assets only after the client passes away. Your client can still name the fund whatever they’d like, and the agreement can be modified any time before the client’s death.?

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To learn how Legacy agreements and other planning tools can help your clients achieve their charitable goals both during their lifetimes and beyond, please reach out to us. Idaho Community Foundation is here to help.

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