You can establish a foundation while you are living, and you can make yourself and family members the directors of that foundation. Essentially, you are creating your own charity. You can control your own charity and sponsor any sort of charitable activity you wish. Your children can then operate your family foundation for generations to come, creating a legacy, family bond, and encouraging community involvement.

Foundations are often created in conjunction with a CRT (See the “Charitable Trusts” section). Under this plan, you give an asset to a CRT (get a deduction), the trustee sells the asset (no capital gains tax), you and your spouse get an enhanced income stream, and on the death of you and your spouse, the assets remaining in the CRT pour into your Foundation estate tax free.