CHARITABLE (TAX-EXEMPT) TRUSTS

A properly drafted tax-exempt Family Foundation structured as a Trust rather than as a corporation will provide more privacy and flexibility than a corporation. There are several benefits which may be achieved by establishing a family-controlled, tax-exempt Trust while the donor is alive, such as:

1. To perpetuate the donor's desire to aid certain less-fortunate segments of society;

2. To serve as a family memorial;

3. Family control over the trust's investments and disbursements of funds for charitable purposes;

4. Minimize administration expenses contrary to the record of many charities;

5. Involvement of the donor's descendants in an annual program of charitable giving;

6. Reduce the taxable estate of the donor and other family members;

7. Retention of control within the family for several generations; and

8. The donor can claim a charitable tax deduction for contributions to the trust.