Family, Community, and the Best of Both Worlds

You’ve probably seen that cheeky bumper sticker on the back of an RV: "We’re Spending Our Kids’ Inheritance." It’s a playful nod to the idea that some parents prioritize adventure over passing down wealth.

But not everyone sees it that way. Many parents work hard to build a nest egg, hoping to make life a little easier for their children. They remember their own struggles and want to provide security for the next generation.

Others have a different vision for their legacy—one that includes not just their family, but also the causes they care about: a local food pantry, a place of worship, education, the arts, or community programs that make a difference.

Surprisingly, no matter which category you fall into, your local community foundation can help you achieve your goals.

Over the next 25 years, the United States is expected to experience the greatest intergenerational transfer of wealth in history. Recent estimates suggest that $124 trillion will be passed down through 2048, with $105 trillion going to heirs and $18 trillion to charitable causes.

That’s a staggering amount. And it presents a unique opportunity: What if some of that wealth could be used to strengthen both your family and your community?

You Don’t Have to Choose Between Family and Philanthropy

Many people hesitate when they hear about charitable giving through a community foundation. A common concern is:

"If I give to the Community Foundation, won’t that take away from what I leave to my family?"

The good news? You don’t have to choose. There are strategic ways to support both your loved ones and your community. Here are a few to consider:

1.     Beneficiary Designations

You can name the Community Foundation as a beneficiary of your retirement accounts (IRA, 401(k)), bank accounts, or investment accounts. This simple step allows you to direct some of your assets to charity while ensuring your family still receives their share.

2.     Donor-Advised Funds (DAFs)

A DAF lets you set aside money for charitable giving while maintaining flexibility over when and how to distribute funds. You can involve your children in giving decisions, instilling a tradition of philanthropy for future generations.

3.     Bequests in Your Will

A simple way to create a lasting impact is by including a bequest in your will or trust.

You can designate a percentage of your estate or a specific dollar amount to benefit the causes most important to you.

4.     Qualified Charitable Distributions (QCDs) from an IRA

If you’re 70½ or older, you can donate directly from your IRA to charity without it being considered taxable income. This strategy is particularly useful if you don’t need your Required Minimum Distributions (RMDs).

5.     Life Insurance as a Giving Tool

Some donors use life insurance to replace the wealth they donate to charity. A second-to-die policy placed in a special trust can provide proceeds to your heirs while allowing you to give generously.

6.     Charitable Trusts

Lifetime Charitable Trusts let you receive income for life, then provide income to your children, with the remaining assets going to charity.

Testamentary Charitable Trusts (established in your will) allow you to provide income to either your family or charity first, with the remaining funds going to the other beneficiary later.

7.     Endowed Funds

Creating a family endowed fund at the Community Foundation allows future generations to continue your philanthropic legacy.

These options aren’t for everyone, but for those looking for a balanced approach to giving, they offer a powerful way to make an impact today while securing your family’s future.

At the end of the day, giving isn’t about choosing between family and community—it’s about creating a legacy that reflects your values.

Maybe it’s time for a new bumper sticker: "Our Kids Will Get Their Inheritance—And So Will Our Community!"

Interested in learning more? Your Community Foundation of White County is here to help you explore the best ways to leave a lasting impact. Reach out to director Lucy Dold to learn more: (574) 583-6911.