Family foundations are a great way for members of a family to come together in a joint effort to contribute to society and their communities. If not handled properly, however, they can also be a source of family strife. The latter is avoidable with good planning.
For a long time family foundations have been an excellent way for wealthy people to leave a positive legacy of philanthropy in their communities. Some foundations last for generations after the founder passes away and create a sense of purpose for later family members. Other foundations, however, become sources of family feuds and do not last.
Recently, Wealth Management wrote about the traits of those foundations that do last in “Top Five Traits of Effective Family Philanthropy.”
The identified traits include:
Ultimately, an experienced estate planning attorney can help ensure the long-term success of a family foundation by careful planning upfront.
Reference: Wealth Management (May 13, 2016) “Top Five Traits of Effective Family Philanthropy.”