I thought this was a nice way to summarize a lot of the issues you should think about before talking with an attorney or other legacy planning professional about your legacy plan: Read the rest of this entry »

I described the technical differences between donor-advised funds (DAFs) and private foundations back in June of 2007. Frankly, at the time, I saw no compelling reason seriously to consider creating a DAF.

Following the FoundationWise^SM conference, however, I’m seeing more reasons than I did back then to consider this alternative. Read the rest of this entry »

Boy! Was I naive!

Kind of like my thinking with respect to estate planning ten years ago, I thought writing an Investment Policy Statement should be pretty straightforward. All I needed, I thought, was some professional help to give me the right words.

But I’ve discovered that is not the case at all–a discovery that is both frustrating (because it means I have a lot more work to do!) and happy at the same time (because I made the discovery; I haven’t made any more foolish or irrevocable mistakes in this area . . . yet).

Way beyond getting the “right words” on paper, Sarita and I need to answer some very fundamental questions–questions far deeper than the average investment advisor is likely to ask or help us answer. Read the rest of this entry »

If you own a business, I’m sure you have heard about the value of incorporation. It is supposed to protect you, personally, from lawsuits . . . or, at least, from the potential effects of lawsuits.

As Allan Branch writes:

The Corporate Veil is the legal shield that protects an individual from being personally liable for the actions of his/her company. This only applies to owners, partners, board members, not employees or share holders. In this country a person, or a company may sue any other person or company for anything, at any time. But there is only one reason to sue, and that is to be awarded money. So if a person or company doesn’t have any money, then there isn’t really anything to sue for.

Unless of course, if there is no corporate veil, then they can come after you personally. This could leave you financially ruined for the rest of your life.

Now I read an article called Piercing the Corporate Veil: How limited is the liability of doing business as a corporation? by Joe M. Hawbaker, Attorney at Law.

Frankly, after reading Hawbaker’s article, I am astonished at how potentially lightweight the protection of a corporation may be. Read the rest of this entry »

Charles W. Collier, in Wealth in Families, expands on the theme urged by James E. Hughes, Jr. to which I’ve alluded in the past–the idea that, as Collier quotes Hughes (perhaps from a personal interview; I have been unable to find these exact words in either of Hughes’ books themselves): “A family’s duty is to work to preserve the family’s principal wealth-generating assets: its human and intellectual capital. The family leadership and governance structure should provide an environment that values and enhances each family member’s ability to pursue their individual life calling.”

As I have meditated on Hughes’ comments and, more recently, on what Collier says, I have realized, on the one hand, that they call our attention to things most of us ignore to our peril. On the other, I have realized that there are several other asset classes that they don’t really address.

I would like to call your attention to four such non-financial, wealth-generating asset classes. What follows, then, combines a bit of Hughes, a bit of Collier, and serious dollop of John Holzmann as well. Read the rest of this entry »

ADDENDUM as of 2/5/09: While I am still excited about the materials I discuss in this post, it is with great sadness that I feel compelled to note I have discovered there are reasons for caution with respect to the sources referenced herein. With respect to Vision Forum Ministries and Doug Phillips, I call your attention to the series of articles at Ministry Watchman and Jen’s Gems. And with respect to Geoff Botkin, see Who is Geoffrey Botkin? at the Under Much Grace blog.

I’ve been listening to a presentation called The 200 Year Plan: A Practicum on Multi-Generational Faithfulness–a CD set put out by Vision Forum Ministries.

It was about three weeks ago that someone suggested I look at the program. Considering my own emphasis on multi-generational, indeed, 200-year plans and more, how could I not take a look?

So I purchased the series . . . and am glad I did!

Wow! Read the rest of this entry »

I dealt with Public v. Private Foundations last year. Lately I’ve begun to learn about something called a “supporting organization.”

Yesterday I met with Doug Johnson, president of a relatively new community fund here in the Denver metro area that is called, simply, The Charitable Fund or TCF.

As with other community foundations, TCF offers Donor-Advised Funds (or DAFs) . . . and these supporting organizations (SO’s)–specifically Type I SO’s.

So what is a supporting organization? What, more specifically, is a Type I SO? And why should you care? Read the rest of this entry »

B____ [our estate planning attorney], L____ [our CPA], and I met this morning for our annual corporate meetings and strategy session. We discussed our legacy plans at this time. Both B____ and L____ were far more comfortable with the idea of us gifting our company to a DAF [a Donor Advised Fund] than changing it into a 501(c)(3) corporation.

They had a few key questions, one of which we were able to answer through resources they had at hand. Two key questions remain, however. (I’m sure a few more will come up. But these were the big ones that existed at the end of our meeting this morning.) Read the rest of this entry »