Florida residents who have a high net worth should consider establishing a private foundation. These foundations allow various family members to work together towards a common cause that can create a lasting future legacy for generations to come. If you’re not familiar with private foundations, it’s time to learn about them.
What is a private foundation?
As part of your estate planning process, you may want to set up a private foundation. This is a private organization that works towards funding various investments. This fund is typically controlled by active family members and is passed down through generations.
The family members involved in the private foundation get to determine who they want to grant money to and see firsthand how their donations impact the community around them. These foundations are commonly set up to help younger family members develop crucial financial skills that they can utilize throughout their lifetime.
An education for your future generations
Private foundations act as a great training ground for younger generations to develop financial skills that will help to ensure that your wealth continues alongside your family legacy. Foundations require board members to conduct due diligence while determining just what causes to devote their funds to. Your heirs can learn essential business skills by working with other members to resolve disagreements and learn to compromise for a central purpose.
Many wealthy families get worried that their children won’t have any ambition due to their being raised in a wealthy environment. The truth is that foundations allow children to not only develop financial and business skills but also to see just why that wealth is considered a privilege to assist other people.