My family's finances are organized around a family trust. I am interested in setting up a donor advised fund for my charitable giving. I learned today though that an account cannot be set up under a family trust.
Was the source at the broker correct?
Anyone been in the same position (i.e. family trust) but went another route for a charitable giving fund?
Thanks for the advice.
Donor advised funds and family trusts
Re: Donor advised funds and family trusts
Is charity a discretionary beneficiary? If not, the trustees can’t distribute to charity.
Last edited by bsteiner on Tue Oct 19, 2021 8:59 pm, edited 1 time in total.
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Re: Donor advised funds and family trusts
When you give money to a DAF, the money becomes that of the DAF. It's no longer yours. They track how much that money is worth and report it to you, but you only have the right to 'advise' the fund on how to donate it. As such, since the money is not yours, it can't be placed into your family trust.a32Jun1966 wrote: ↑Tue Oct 19, 2021 7:51 pm My family's finances are organized around a family trust. I am interested in setting up a donor advised fund for my charitable giving. I learned today though that an account cannot be set up under a family trust.
Was the source at the broker correct?
Anyone been in the same position (i.e. family trust) but went another route for a charitable giving fund?
Thanks for the advice.
One or more of your trustees can be named as advisors for your DAF account of course.
Re: Donor advised funds and family trusts
My error. I edited it to change the second question mark to a period.
There’s been some discussion in the last few years about making charity a permissible beneficiary of trusts to allow income tax deductions for distributions to charity where the beneficiaries don’t itemize. But trusts with that provision aren’t yet very common.
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Re: Donor advised funds and family trusts
Ok. Got it. But is there a issue here if I wanted to transfer stock from my family trust account over into a DAF? Don't stock transfers need to be from like to like accounts?interwebopinion wrote: ↑Tue Oct 19, 2021 8:32 pmWhen you give money to a DAF, the money becomes that of the DAF. It's no longer yours. They track how much that money is worth and report it to you, but you only have the right to 'advise' the fund on how to donate it. As such, since the money is not yours, it can't be placed into your family trust.a32Jun1966 wrote: ↑Tue Oct 19, 2021 7:51 pm My family's finances are organized around a family trust. I am interested in setting up a donor advised fund for my charitable giving. I learned today though that an account cannot be set up under a family trust.
Was the source at the broker correct?
Anyone been in the same position (i.e. family trust) but went another route for a charitable giving fund?
Thanks for the advice.
One or more of your trustees can be named as advisors for your DAF account of course.
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- Posts: 11
- Joined: Wed Jun 23, 2021 6:12 pm
Re: Donor advised funds and family trusts
Makes sense. Thanks for the reply.bsteiner wrote: ↑Tue Oct 19, 2021 9:03 pmMy error. I edited it to change the second question mark to a period.
There’s been some discussion in the last few years about making charity a permissible beneficiary of trusts to allow income tax deductions for distributions to charity where the beneficiaries don’t itemize. But trusts with that provision aren’t yet very common.
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Re: Donor advised funds and family trusts
You'll have to check with your lawyer on your trust, but usually the garden variety trusts are written to give trustees wide latitude on how and in what form the assets are disbursed.a32Jun1966 wrote: ↑Tue Oct 19, 2021 9:58 pm
Ok. Got it. But is there a issue here if I wanted to transfer stock from my family trust account over into a DAF? Don't stock transfers need to be from like to like accounts?