Family business owners who would like to leave a charitable legacy behind when they pass away have a unique way that they can do so. They can donate some of their business interests to charity without affecting their own lifestyles very much.
As people get wealthier, their estate planning goals normally begin to get a lot more diverse. People with only a few assets typically have a main goal of making sure those assets go to provide for their families. However, the wealthy have plenty of assets to make sure their family members are taken care of and accomplish other things in their estate plans.
For many another important goal is leaving behind a strong charitable legacy. It is a way to be remembered for doing good things, long after the wealthy person has passed away. There are many different ways a charitable legacy can be created. For example, business owners have the option of giving part of their business away as Wealth Strategies Journal discussed in “The Generous Business.”
The idea is fairly straightforward. A business owner can give some of her interest in the business to a donor guided charitable fund, which can then be used to make donations to many different charities. Another benefit of doing this is its charitable tax deduction. Doing this should not have a significant impact on the giver either, because as long as control of the business is still maintained, the owner can continue to draw the same salary for work.
If you would like to leave behind a charitable legacy, talk to an estate planning attorney about the best options for you.
Reference: Wealth Strategies Journal (Jan. 29, 2018) “The Generous Business.”