Planning Article

March 2024 – By Joe Fortunato CFP^®

In the vast landscape of succession planning, we have things like wills, trusts, and beneficiaries for our retirement accounts, etc., but have you reviewed what happens to your Donor-Advised Fund after you’re gone?

While you’re living, these funds help you benefit from charitable deductions, based off contributions, while you watch your invested balances potentially grow as you select which charities will receive grants from it. When you are no longer here to direct which charities receive grants from the fund, you have options regarding who manages these proceeds to carry on your family legacy of charitable planning.

Upon death, you can name specific charities to receive the remaining balance or select the Endowed Giving Program that lets you set up recurring grant recommendations to up to six charities for a minimum of five years, as well as name individuals as “Successor Grant Advisors.” For example, the “Successor Grant Advisors” could be your children, siblings, or grandchildren to carry on your charitable-minded family vision. Your Successor Grant Advisors would open their own Donor Advised fund (if they don’t already have one). Then, the assets from your current donor-advised fund will be transferred into your Successor’s established fund. Once that is complete, they can continue the legacy by naming their own Successor Grant Advisor.

Talk to your Wealth Advisor to review how these fit into your family’s succession planning. To confirm you have this set up correctly, contact Fidelity Charitable at 800-262-6039.

The material presented is for educational purposes only.  It is not meant to be construed as investment advice or a recommendation to buy or sell any specific security.  Vantage Financial Partners Limited is an investment advisory firm registered with the Securities and Exchange Commission (“SEC”).  SEC registration does not imply a certain level of skill and or expertise.