Helping Families Establish Private Foundations

Individuals and families with substantial wealth face unique issues. One such issue is dealing with the estate tax. Under current law, if your estate is worth more than $5 million, all assets above that amount face a 35% tax rate. These laws are subject to review, and could be revised upwards in the future. Here is one way to look at the estate tax: If your estate is worth $8 million and you do not do any estate planning, the federal government will take more than $1 million from your estate at your death.

Careful estate planning can prevent this from happening. One way to minimize your estate taxes while simultaneously doing good in your community is to establish a private foundation. When people think of private foundations, large foundations such as the Bill and Melinda Gates Foundation may immediately come to mind. The vast majority of foundations, however, have less than $1 million in assets.

Private foundations are tax-exempt, and can help you forge a positive legacy for yourself and your family. Private foundations have other advantages as well. You can appoint your children or loved ones on the board of your private foundation, while paying them a salary to serve in this capacity.

Freeman Tax Law offers a broad spectrum of estate planning and tax law representation. We can help you and your family establish a private foundation and help develop other charitable giving strategies as necessary. Our lawyers will advise you on the specific issues involved in establishing a private foundation, and can take all the appropriate steps to establish your foundation and comply with federal regulations.

We Also Represent Individuals and Foundations in Tax Controversies

The IRS is known to closely scrutinize private foundations to ensure that they comply with all applicable tax regulations. If your foundation is involved in a tax controversy with the IRS, our law firm offers the legal representation you need. Attorney Jeff Freeman and our team of professionals represent clients across the United States against the IRS. If your foundation has been accused of violating:

  • Self-dealing restrictions
  • Minimum distribution requirements
  • Limits on holdings

you could face additional taxes, interest or penalties. Our law firm will employ strategies aimed at mitigating the potential damage.

Contact our office with any questions