Getting a jump on a future “to do” list is always such a good feeling. The team at DuPage Foundation can help you with your clients’ long-term charitable giving plans by putting in place the structures to receive bequests decades from now, or in case they are suddenly needed sooner.
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. Few of us support the same charities and causes that we did 20 years ago. 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 DuPage Foundation as the beneficiary of 10% of the remaining estate. Then, the client can work with the Foundation to draft a fund agreement that lists the charities that will share the 10%. When the client wants to add new charities or switch out charities from the list, the client can reach out to DuPage Foundation and execute simple documentation updating the client’s intent for the fund. 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, and their own evolving charitable interests.
In some cases, the client may not intend to use the fund during their lifetime. That’s perfectly fine, and DuPage Foundation can establish a “testamentary fund” 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 testamentary fund agreement can be modified any time before the client’s death.
Please reach out to learn how testamentary funds and other planning tools can help your clients put into place the infrastructure now to achieve their charitable goals both during their lifetimes and beyond.
