Memorable memorials

SEP 16, 2012
Clients looking to establish a financial memorial in the name of a loved one should set a goal and timeline for the fund, and then team with an appropriate community foundation or nonprofit to administer the funds, a financial adviser recommends. “Find a focus, maybe something your loved one believed in or attended, and then pair up with an organization,” Morgan Stanley Smith Barney LLC's Aly-son Scott said. “Running a fund and being compliant tends to take more time and money than is necessary.” A scholarship, for example, can be administered through a university or other nonprofit, allowing the person donating or raising the money to avoid the tax and legal compliance issues that come with administering the fund, Ms. Scott said. The donor typically still can direct how the funds are awarded. The development officer of the school can tell donors if they have minimum requirements for how much must be donated or for how long the scholarship is expected to exist, Ms. Scott said. Unless a family or individual has at least $1 million, or more likely $5 million, it doesn't make sense to set up a foundation, due to the expense of running it, she said. Clients who may be interested in setting up a fund that would send money to individuals or groups outside the United States would need special guidance because of the added complexities of donating outside the country. It is important that donors decide how much they want to be involved with the distribution of the funds before they approach an organization, said Jay Higgins, an adviser at Riverbridge Partners LLC. “Take the time to choose the organization, and make sure it can carry out the goals you want on behalf of your loved one,” he said.

Latest News

SEC Says Game Service Roblox Part of ‘Active Investigation’
SEC Says Game Service Roblox Part of ‘Active Investigation’

Short sellers previously said the company was under investigation, though Roblox denied allegations.

Musk’s DOGE descends on CFPB with intention to shut it down
Musk’s DOGE descends on CFPB with intention to shut it down

The Consumer Financial Protection Bureau is in the crosshairs of the Republican group that is widely attempting to dismantle government agencies.

Advisor fighting Finra banishment loses $17.7 million dispute with old firm
Advisor fighting Finra banishment loses $17.7 million dispute with old firm

National Securities Corp. sued the advisor in 2020, alleging breach of contract and unjust enrichment.

Job numbers, inflation leaving room for Fed to hold rates
Job numbers, inflation leaving room for Fed to hold rates

Recent data support a measured pace by the Federal Reserve for the year ahead.

Private assets remain hot despite surging stock market
Private assets remain hot despite surging stock market

Financial advisors are still adding alternatives despite the surge in publicly traded stock prices

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.