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Example client profile
In the early 1970s, a Trust client started a family foundation with the mission of supporting local youth organizations in New England where the family resides. Over time, the family has grown to include multiple branches and generations, some of whom have moved away. The matriarch and patriarch of the family have decided to sell the family business and to allocate a significant portion of the proceeds to philanthropy. In preparation for the sale and increased commitment to their philanthropy, they engaged the Philanthropic team to help the family think through their options with regard to the structure of and family engagement in the family’s future giving. They sought our assistance to facilitate a conversation with the extended family to present the options of continuing to participate in the foundation and/or pursuing their own philanthropic plans.
Action steps taken
As an early first step, The team presented to the family an educational overview of the operational, governance and grantmaking requirements of a family foundation as compared to a donor-advised fund, and how each giving vehicle might help them to achieve their respective philanthropic visions. Each branch of the family was presented with the option of establishing its own philanthropic vehicle – be it a foundation or a donor-advised-fund and/or remaining involved with the Foundation. It became apparent during the family meeting, that each family branch would benefit from an individual meeting with the team to address their individual philanthropic goals and ways to pursue them.
Eldest Child: Became more actively involved in the existing family foundation
Action steps taken
Impact
Second Eldest Child: Stepped down from the existing family foundation and opened a new donor-advised fund
Action steps taken
Impact
Youngest Child: Stayed involved with the existing family foundation and opened a donor-advised fund
Action steps taken
Impact
The case study presented is hypothetical and does not reflect specific strategies we may have developed for actual clients. It is for illustrative purposes only and intended to demonstrate the capabilities of U.S. Trust, Bank of America Private Wealth Management and/or Bank of America. It is not intended to serve as investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Results will vary, and no suggestion is made about how any specific solution or strategy performed in reality. Always consult with your independent attorney, tax advisor, investment manager, and insurance agent for final recommendations and before changing or implementing any financial, tax, or estate planning strategy.
The case studies presented are hypothetical and do not reflect specific strategies we may have developed for actual clients. They are for illustrative purposes only and intended to demonstrate the capabilities of Bank of America Private Bank and/or Bank of America. They are not intended to serve as investment advice, since the availability and effectiveness of any strategy are dependent upon your individual facts and circumstances. Results will vary, and no suggestion is made about how any specific solution or strategy performed in reality. Neither Bank of America Private Bank nor any of its affiliates or advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Donor-advised fund and private foundation management are provided by Bank of America Private Bank.
Institutional Investments & Philanthropic Solutions (“Philanthropic Solutions”) is part of Bank of America Private Bank, a division of Bank of America, N.A., Member FDIC, and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”). Trust and fiduciary services and other banking products are provided by wholly owned banking affiliates of BofA Corp., including Bank of America, N.A. Brokerage services may be performed by wholly owned brokerage affiliates of BofA Corp., including Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”).
Certain Bank of America Private Bank associates are registered representatives with MLPF&S and may assist you with investment products and services provided through MLPF&S and other nonbank investment affiliates. MLPF&S is a registered broker-dealer, Member SIPC, and a wholly owned subsidiary of BofA Corp.
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