Keep Your Family Legacy in the Family With a Private Foundation
How would you feel if your family heirloom has to be given to a complete stranger? Yet again, how would you feel if all or most of your family legacy, trust funds or family estate, that had been in the family for generations, has to be given away to the government as a form of paying a tax? Wondering how you could overcome this particular issue and actually leave your family legacy intact for your family? Then how about reading the following to find out how.
On the contrary to common beliefs that strong family foundations can only belong to people like Bill Gates or the Rockefeller's, you can now create a family foundation and safeguard your family legacies in it.
The basic requirement of a family foundation is that it should have sufficient funds in its account on a yearly basis to meet annual contributions and endowments.
In the current financial market, if you have an account total of twenty five thousand dollars to take care of, then even you can start your own family foundation.
This particular clause is very much limited to estates with a net worth of at two million dollars or more.
When you start such a foundation, you can state that the foundation is either operational or non operational.
An operational foundation would have its contributions channeled towards maintaining a facility like a lab or an art museum, while a non operating foundation would act as a channel to fund and support other operating foundations.
Any cash contributions made to your foundation is exempt up to thirty percent of the total contributions.
Running a private foundation can definitely come in handy to protect your family legacy.
Such foundations are expected to pay a two percent tax on the total investment and a distribution of five percent of the assets that are made on a yearly basis.
Though with time, the assets of a private family foundation could diminish.
Yearly gifts to your own foundation to replenish the assets without affecting the exclusions under gift tax, can come in real handy.
The best part about such a foundation as against conventional public charity is that you have better control over the functions of your trust.
Also, when you register your trust as a non-profit foundation, you can always change your mission and goal statements as and when required.
On the contrary to common beliefs that strong family foundations can only belong to people like Bill Gates or the Rockefeller's, you can now create a family foundation and safeguard your family legacies in it.
The basic requirement of a family foundation is that it should have sufficient funds in its account on a yearly basis to meet annual contributions and endowments.
In the current financial market, if you have an account total of twenty five thousand dollars to take care of, then even you can start your own family foundation.
This particular clause is very much limited to estates with a net worth of at two million dollars or more.
When you start such a foundation, you can state that the foundation is either operational or non operational.
An operational foundation would have its contributions channeled towards maintaining a facility like a lab or an art museum, while a non operating foundation would act as a channel to fund and support other operating foundations.
Any cash contributions made to your foundation is exempt up to thirty percent of the total contributions.
Running a private foundation can definitely come in handy to protect your family legacy.
Such foundations are expected to pay a two percent tax on the total investment and a distribution of five percent of the assets that are made on a yearly basis.
Though with time, the assets of a private family foundation could diminish.
Yearly gifts to your own foundation to replenish the assets without affecting the exclusions under gift tax, can come in real handy.
The best part about such a foundation as against conventional public charity is that you have better control over the functions of your trust.
Also, when you register your trust as a non-profit foundation, you can always change your mission and goal statements as and when required.
