May 29, 2020
Investing Fundamentals For Young Adults: Understanding Risk
By taking the time to understand the full scope of the potential risks and rewards of an...
Judy Saxe, AEP®, CAP®
February 18, 2020
This is the third blog in a three-part series that focuses on effective philanthropy.
Part 1: 3 Steps to Begin (or Continue) Philanthropy
Part 2: 4 Steps to Create a Plan for your Philanthropy
With a multitrillion-dollar intergenerational wealth transfer set to take place over the next few decades—and a significant portion of that wealth earmarked for philanthropic causes—charitable planning is a timely topic of discussion. Whether you have only begun to consider incorporating philanthropy into your wealth plan, or already have well-defined goals and aspirations, the following strategies may help you effectively achieve your charitable giving goals.
A charitable remainder trust (CRT) is an irrevocable trust that makes payments (at least annually) to you or other noncharitable beneficiaries for a term of years (not more than 20) or for life. At the end of the trust term, the CRT pays the remaining value of the trust to charity. Key characteristics of this strategy include:
A charitable lead trust (CLT) is an irrevocable trust that makes payments (at least annually) to charity for a term of years or for the lifetime of one or more individuals. At the end of the trust term, the CLT pays the remaining value of the trust back to the grantor or to another designated individual. Key characteristics of this strategy include:
Donor-advised funds (DAFs) are accounts that are set up within charitable organizations, such as community foundations, or are set up as charitable gift trusts managed by financial institutions. Key characteristics of DAFs include:
A private foundation (sometimes called a “family foundation”) is a charitable organization that exists primarily to make grants to publicly supported charities, nonprofit organizations, qualified individuals and government bodies. Private foundations may be established in perpetuity for charitable purposes, and may be organized in trust or corporate form. Key characteristics of private foundations include:
While there are many approaches to philanthropy, it is important to remember that the journey to making a measurable impact is often long and requires patience and flexibility. There are many variations to the strategies outlined above, as well as additional charitable planning opportunities. To better understand the advantages and limitations of each, it can be helpful to work with a qualified professional when planning.
For more information on these and other charitable gift planning strategies, visit our Effective Philanthropy resource page.
Judith Saxe is the director of research and education for wealth strategies and a senior wealth strategist at CIBC Private Wealth Management.
* Required fields
Internal Custody:If your assets are custodied with Atlantic Trust, please select the internal custody version of Atlantic Trust Portfolio Online to view your portfolio information.
External Custody:If your assets are custodied with an external custodian, such as Schwab, Fidelity or The Bank of New York, you may access the external version of Atlantic Trust Portfolio Online.
Sponsored Funds Investors:If you are an investor in any of the Atlantic Trust Sponsored Funds, you may access the Atlantic Trust Investor Dashboard here.
Safari Browser Users:To access login links, you will need to deselect the "Block pop-up windows" option under your security preferences.
For further assistance, please contact your Atlantic Trust client service team.