Our Weekly Tip: Set Up A Memorial Fund to Honor Your Loved One

Credit: covtrustblog.com

Our Tip of the Week: For many people who have lost a loved one, finding a way to connect the person who has died to the future in some way is an integral part of processing grief. By keeping the person’s memory alive, they create a lasting connection that helps to bridge the divide between the life they shared together and life as it exists today. It is a way, says Dr. Kenneth Doka, professor of gerontology at the graduate school of The College of New Rochelle and the author of over 20 books on the subject of grief, of creating a bond with the loved one that “goes beyond death.”

How one chooses to create this type of memorial is a very personal decision. Many people in Western society choose to create a physical memorial, while others do so through writing or art. Eric Clapton’s famous recording, “Tears in Heaven,” for example, was a tribute to his 4 year-old son, who died in a tragic fall.

Yet another way of creating a lasting legacy for a loved one is to set up a memorial fund in the loved one’s name through a local non-profit. It’s this option that we’ll discuss today.

How-to Suggestion: Charitable funds are typically set up through community foundations or organizations, such as libraries, hospitals and universities. The fund can be organization-specific or as general as you wish. For example, a “Field of Interest” fund allows you to designate a broad area of interest, such as animal welfare or preventing child abuse. A “Designated Fund,” on the other hand, specifies a particular organization, such as a local community center, as the fund recipient. Use your loved one’s life and passion to guide your decision about the type of fund to create.

To find a community foundation in your area, consult the website of the Council of Foundations and contact the director of the foundation of your choice to discuss your needs. You may also wish to consult a financial adviser to discuss the type of asset — cash, securities or real estate, for example–you wish to donate.  Each organization has different criteria as to the amount of the initial endowment, so you may need to contact several to find one that’s a good fit. Once you have made your choice, the foundation staff will assist you in setting up the fund and choosing recipients. They will also handle all administrative tasks, such as record keeping and annual reports.