A Trust That Keeps on Giving and Giving

Fotolia_48003575_Charitable_Trust_190x199Nearly four decades after his death, Detroit businessman Dick E. Morand is giving to the causes close to his heart. Leave A Legacy, Southeast Michigan, a program of the Planned Giving Roundtable of Southeast Michigan, recently announced a $13 million planned philanthropic gift from Morand that is benefiting five Metro Detroit nonprofits. Morand died in Detroit in 1977 at the age of 87. He was founder and owner of D.E. Machinery Company and was vice president of Addy-Morand Machinery Company. His wife, Helen, died in 1976 and the couple had no children.

After the 2013 deaths of the two remaining beneficiaries to Morand's special trust, five organizations discovered that they would benefit from his gift, with each charity to receive $2.7 million.

The Detroit News, in its recent article titled “Philanthropist gives $13M decades after death,” reported that the United Way For Southeast Michigan decided to place the gift in its endowment. Officials at the United Way said this would ensure that Morand's gift would have a positive effect on the community for many years to come. Morand created a charitable remainder annuity trust to provide the money to the organizations.

The original article suggests that a charitable remainder annuity trust is a subject best broached with an experienced estate planning attorney. You might use this trust in your own estate planning to lower your tax liability, give income for life to your beneficiaries, and provide a gift to your favorite charities.

Forty years on, and Mr. Morand’s charitable remainder annuity trust is still helping others.

For more information about estate planning, please visit my estate planning website.

Reference: The Detroit News (March 20, 2015) “Philanthropist gives $13M decades after death”

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