FOR LAWYERS

What Is an Endowment Fund?

By
James Parker
/
October 25, 2021

Dividing an estate can be difficult to consider, particularly if the estate planner wants to support a charity. No matter how meticulously it is planned, the planner can only give the assets that they have to a particular cause. However, there is a way to leave a legacy that lasts far longer than a one-time distribution.

At its most basic, an endowment fund is a managed, charitable account that is set up to provide support for one or several of the donor’s chosen charities or causes. This can come after the donor’s death or during their lifetime.

Once created, an endowment fund’s initial investment is not touched. Instead, the fund is carefully invested and a portion of the profits are systematically siphoned off to be distributed to charities or causes. The initial investment can also be withdrawn after a set period determined in the establishment of the trust. 

When establishing an endowment fund, the planner will need to create policies regarding what type of investing the manager of the fund is allowed to make, what the profits of the fund may be used for, and when - if ever - the initial investment is allowed to be withdrawn.

In addition to being beneficial to a cause or charity, the donation to the endowment fund can also be used as a tax deduction which may help the estate planner preserve more of their assets to be distributed following their passing. 

If you or your organization are looking to create an endowment fund, you will need the help of an experienced Trust & Estates attorney. An experienced Trust & Estates attorney can preserve your fund while minimizing the number of losses you may suffer from taxation and fees that may otherwise have been applied. The best place to find a Trust & Estates attorney is Attorney at Law.

At AAL, our nationwide network of attorneys and law firms allows us to match you with a Trust & Estates attorney in your area. Our partners have the resources, legal expertise, and experience to handle estates of any size.

In addition to a distinguished record, our partners excel in client care. AAL understands the difficulty of planning an estate. That’s why our partners take time to explain any questions you may have about the process while keeping you informed about any developments. 

Don’t wait. Contact AAL today for a free, no-obligation consultation and secure your future.

Featured Trust & Estate Lawyers

Gary C. Eto Trial & Injury Attorney

Google rating
4.1
37 years in practice
Criminal Defense, Personal Injury, Trust & Estate
View Profile

Goudsouzian & Associates

Google rating
4.9
28 years in practice
Criminal Defense, Personal Injury, Trust & Estate
View Profile

Forr Stokan Huff Kormanski & Naugle

Google rating
4.3
46 years in practice
Auto Accidents, Personal Injury, Trust & Estate
View Profile

Related Posts

The UTMA: How It Works
James ParkerNovember 22, 2021
Reasons to Change a Will
James ParkerMay 9, 2022
Estate Taxes: The Cost of Dying
James ParkerSeptember 10, 2021
Challenging a Will: How It Works
James ParkerJanuary 7, 2022
Attorney At Law is changing how clients connect with lawyers. By providing an innovative platform to lawyers who want to expand their practice’s reach, AAL is bringing law practices into the future.
6142 Innovation Way
Carlsbad, California 92009
Some of the content of this website may be considered attorney advertising under the rules of certain jurisdictions. The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.
crossmenuchevron-upchevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram