A Donor Advised Fund is one charitable vehicle often utilized in the estate planning of high-net-worth individuals.

A Donor Advised Fund, commonly referred to as a “DAF”, is a charitable fund maintained by a public charity that is dedicated solely to charitable giving. Contributions made to a DAF during one’s lifetime entitle the donor to an immediate tax deduction, notwithstanding the potential future grant distribution.

Contributions made to a DAF at one’s death through their estate afford certain estate, inheritance, and income tax benefits as well as create numerous charitable giving opportunities for chosen causes or charities recommended by your estate or appointed to your loved ones.

Utilizing DAFs as a charitable vehicle within one’s estate plan also lends flexibility to adjust charitable giving priorities that inevitably change over time without having to incur the administrative cost and burden of amendment of the estate plan to redirect giving.

Tovella Dowling counsels clients on various charitable giving vehicles, such as DAFs, and identifies the most feasible option to holistically address all client concerns in the estate planning process.