Using Donor Advised Funds in Estate Planning
Donor advised funds can be a beneficial estate planning tool to help your clients leave a lasting impact on their community. When working through the details of a bequest with charitable-minded clients, a few common questions typically arise:

  • How will our children feel about not inheriting the entire estate?

  • How will charity treat the distribution from our estate?

And for those who have no heirs, the concern remains:

  • How will my funds be used?

In all instances, a legacy fund at the Oklahoma City Community Foundation is an ideal solution.

What is a legacy fund?
A legacy fund is a permanent donor advised fund that annually allows 5% of the fund’s market value to be distributed to one or more charities as directed by the donor and/or their successor advisors. The balance of the fund is invested to provide for growth. 

Donors who are considering using their estate to establish a legacy fund take comfort in knowing they can name a charitable organization to benefit from their fund in perpetuity. That means their legacy fund will support their favorite charities even after their death.
The Payne Family Legacy
A gift from late Oklahoma oilman William T. “Bill” Payne created a lasting legacy for his family, who continue to use the William T. Payne endowment at the Oklahoma City Community Foundation to give back to charitable causes important to their family.

“My children always knew this was a special gift their grandfather left us,” said Nancy Payne Ellis. “I was able to involve my children in charitable giving at a young age, and we share that as a family.”

A legacy fund can also teach the family about the value of giving. By allowing heirs to provide granting advice on the legacy fund, your clients can unite their family through philanthropy and help their heirs learn more about charitable giving.

Regardless of the situation, a legacy fund provides a perpetual stream of income to support the donor’s favorite charities every year. Legacy funds can be established with a minimum gift of $20,000, allowing your clients to control their distributions even after their death, encourage charitable giving for the entire family and most importantly, ensure their gift is used for projects and causes close to their hearts.

If you have questions about a legacy fund, or any other fund at the Oklahoma City Community Foundation, contact me at 405/606-2914. 
Are you an estate planning professional looking to increase your knowledge to better serve your clients? Check out this free luncheon hosted through the Oklahoma City Community Foundation and the Cannon Financial Institute!
Client or Non-Client?
When we are engaged by clients who are professionals, such as doctors, lawyers, teachers, architects, etc., there are often special estate planning issues that must be addressed. Given their busy lifestyles, and often lack of interest in and attention to financial and legal matters, clients who are professionals sometimes leave a mess following incapacity and/or death.
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