Would you like to create a private family foundation? It may be the most rewarding thing of your life is going to do – or not. Take this quiz to find out if you are prepared.

To determine whether the creation of a foundation is right for you, check the following statements as true or false.

1. The main reason for the creation of a foundation should be the resulting tax savings.
2. The creation of a foundation similar to the creation of a corporation.
3. A private family foundation would make an excellent Christmas gift for my family.
4. If you do not like my foundation now, I just close up shop.
5. Done properly, a foundation can be very rewarding and bring the family closer.
6. It is important to focus on political correctness in choosing a purpose for the foundation, if I like the activities in question or not.
7. A private foundation is private, so there are few or no reporting requirements and administrative problems.

Answers

1. Fake. Tax savings can be one of the benefits, but you should focus primarily on what you’re passionate about and make the mission of his foundation. To make your foundation work rewarding, you need to find a way to integrate it with your own passions and your life. Many of the tax savings actually come from his power to pursue their passions in pretax dollars.

2. True. The creation of a foundation is very similar to the creation of a corporation. In fact, usually is a foundation created as a corporation. There is also a significant amount of legal and administrative work to do on an ongoing basis.

3. Fake. A foundation is a big commitment. Unless your family has actively participated in decision making, and is deeply committed to the foundation, which will not work. "Amazing" to his family with a foundation is a very bad idea.

4. Fake. A foundation as a corporation, is a long term commitment. It becomes its own entity. Not only can you start and close them at will.

5. True. If your foundation is really about his passions and his family, and is well integrated into their life plan, is likely to be very rewarding. And working together on a shared passion is bound to lead to a closer relationship between you and your family.

6. Fake. Absolutely not. You must create your foundation around their own passions, not around what they perceive as the politically correct issue of the moment. If not, lose interest very quickly, and its foundation will become a task, and perhaps a nightmare.

7. Fake. The name however, a private foundation is subject to numerous requirements. For example, there are reporting requirements, legal and administrative requirements and the requirements for the disbursement of funds to charities or charitable activities.

The results

How did you do? If you have answered at least 6.7 questions correctly, you may be ready to take the big step. Make sure you get all the facts, however, that his foundation will become a rewarding experience you deserve.

If you answered fewer questions correctly, you may want more information on private foundations. You need to know more about how they actually work and what it is.

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