Family Values

By Pellet, Jennifer | Chief Executive (U.S.), June 2005 | Go to article overview

Family Values


Pellet, Jennifer, Chief Executive (U.S.)


NET WORTH

How to more than just money on to your children. BY JENNIFER PELLET

If you're like most parents, you want the best for your children. You want, in fact, to give them the world. But you probably also worry that too much too soon could scud them down a path of conspicuous consumption-or worse, destructive overindulgence. "So much of estate planning today is about how to tax efficiently move money from one generation to the next, but at some point the wealth transferred will be neither helpful nor productive," says Douglas K. Freeman, chairman and national managing partner of IFF Advisors, Irvine, Calif. "It creates a sense of dependency on someone else's wealth, which is the opposite of how the wealth creator made the money in the first place."

Ideally, the children of wealthy parents will be guided to an appreciation of the wealth they receive, as well as the values and responsibility that come with it. The challenge, of course, is how to get them there.

For philanthropically minded parents, a family foundation-a private foundation in which the founder or the founder's family plays a significant governing role-is one solution. Creating such a foundation simultaneously creates a lasting charitable legacy and instills a sense of fiscal competency and responsibility in successive generations, says Freeman. "A family foundation is a wonderful platform to teach your kids the skills required of a competent adult, such as leadership, collaborative decision-making, communication, fiduciary responsibility and accountability," he explains.

That said, the legal structure and financial and administrative commitment required for the family foundation won't every family's needs. Two potential hurdles are financial commitment and tax ramifications. Because the law requires that foundations distribute 5 percent of their value per year in grants, consensus holds that a fully funded foundation should hold $1 million or more to be fiscally sound. However, the foundation can be set up for $5,000 and funded, at least initially, with $100,000 or less. "It takes on average 18 years to fully fund a foundation," says Freeman, "so it's more about how much you plan to contribute over your lifetime than how much you can contribute on the front end. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Family Values
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.