Private Foundation Creation and Planning

We help clients create private foundations, which are distinct legal entities that can offer estate and income tax benefits. Federal law requires that a foundation be organized and operated only for certain purposes (such as religious, charitable, or educational purposes). Subject to certain limitations, the value of property contributed to a private foundation can be taken as a Federal income tax deduction. If a foundation is created as a charitable trust, the person establishing the foundation can be the sole trustee and have complete control over all functions of the foundation, including distributions (subject to certain rules). Additionally, upon death, any property contributed to a private foundation can qualify for the Federal estate tax charitable deduction.