Foundations and endowments can be important tools for wealth transfer and family legacy planning. We design an effective plan to optimize this transfer. Some common concerns that have molded our approach are as follows:
- "We want to pass wealth to our children in a way that ensures their well-being."
- "We want to tell and preserve the story of how our family wealth was built and the importance of the family's history."
Four Keys to Success:
- Organize, Create, and Implement a family wealth plan
- Engage, communicate, and be transparent with the family and community
- Develop a healthy family wealth culture
- On going monitoring of the family wealth plan
- "We want to create both a philanthropic philosophy and a vehicle to carry forth the values we hope our children and grandchildren share."
- "We want to structure a plan that will allow future generations to make their own imprint on the wealth we've created."
Education and Resources:
ERISA – Employee Retirement Income Security Act
Federal legislation that impacts corporate qualified retirement plans, both defined benefit and defined contribution plans; 401(k)s.
UPIA – Uniform Prudent Investor Act
State-enacted legislation that impacts private trusts. As of June 2006, 44 states plus the District of Columbia and the U.S. Virgin Islands have passed UPIA in whole or in substantial part, a listing of which is contained in the Steward and Advisor handbooks. The UPIA should also be looked upon as the default act – if you’re not sure which fiduciary Act applies, default to the UPIA.
UPMIFA – Uniform Prudent Management of Institutional Funds Act
Newly proposed state-enacted legislation that will impact foundations, endowments and government sponsored charitable institutions.
MPERS – Uniform Management of Public Employee Retirement Systems Act
Proposed state legislation that will impact state, county, and municipal retirement plans. As with UPIA, each state has the right to adopt the proposed legislation. MPERS can be simply explained as having administrative and record-keeping provisions similar to ERISA, with investment fiduciary responsibilities closely paralleling those of the UPIA.