20 by a multitude of factors • Actual amount subject to approval by either the beneficiaries or a judge • Must prepare detailed accounting records (no matter how good your math skills are) and keep track of all your time and efforts spent, to sup- port your claim for compensation • Most work must be done before any compensation is paid (could be years later) • It is taxable income (of course) Provisos: • Must be available to do all necessary tasks and attend all appointments, usually during regular working hours, regardless of having a full-time job, family, or other obligations • Quitting or giving up strictly prohibit- ed, unless a judge agrees • You are a fiduciary and will be held to that standard (see ability to compre- hend technical legal language listed above) • Inheriting another problematic, unfin- ished estate is a possibility (was the deceased an executor?) • If anything goes wrong, you may be personally liable If this sounds like your ideal job, there is no need to apply. Simply sit back and wait. One day, if you live long enough, or know enough people, or have a fami- ly, and are somewhat likeable, or even if you are not, this amazing job could be all yours. Fortunately, you CAN hire professionals to assist you, keeping in mind that any tasks undertaken by professional advi- sors which an executor could reasonably be expected to complete should be deducted from your negotiated compen- sation amount. Written by Sandra Arsenault, Law Clerk at Fasken Martineau DuMoulin LLP. Sandra is an experienced law clerk having worked over 18 years as a legal professional in Toronto, Ontario, almost exclusively in Trusts, Wills, and Estates. https://www.fasken.com/en/sandra-arse- nault www.linkedin.com/in/sandra-arsenault This article was originally posted at www. allaboutestates.ca Flexible foundations The recent growth in the number and value of private foundations in Canada is certainly driving examination of “spending pathways”. There is a contem- porary bias that a spending plan needs to be clearly established at the outset, alongside mission, vision and values. A recent article in The Philanthropist Journal funded by the newly-minted Definity Insurance Foundation explores various options. Unfortunately, the U.S. experience is so much better publicized and documented, and this paper misses many Canadian examples. It also misla- belled a common, non-doctrinaire model: the flexible foundation. The article uses the term “accidental spend-down”, which I believe is both wrong and pejorative. I think most foundations are flexible and evolve over time, and that is a good thing. A flexible endowment is one that has capital but also uses it along with investment returns over time to maximize public impact. A rigidly defined foundation timeline is unnecessary Indeed, it may extend over two or three generations, but that is different than truly perpetual. An unrecognized norm Many well-known, established Canadian private foundations are on a slow, unan- nounced spend-down. Why? Because they spend more than the minimum annual 5% disbursement quota each year. They spend at a rate that is greater than the historical rate of return. They are also human institutions that can run out of steam due to inter-personal dynamics. A minority of foundations have explicit spend-down mandates or sunset dates. By analogy only a small minority of peo- ple know their date of death, or compa- nies know when they will go out of business. That’s OK. Labelling flexibility as “accidental spend-down” downgrades the importance of engaged, dynamic philanthropy that changes over time. The emphasis should be on philanthrop- ic responsiveness and finding the right balance between current and future community needs. Sure, flexible foundations have invested capital and will be around for a long- time, but many foundation boards like the option to grant and spend beyond the minimum annual disbursement quota of 5% per annum. They are com- mitted to charitable benefit and impact. These foundations may appear perma- nent, but they will evolve, and change. They won’t last forever, and that’s fine. They do their work quietly and effec- tively. Malcolm is a philanthropic advisor with 30 years of experience. He is head, philan- thropic advisory services at Scotia Wealth Management and founder of Aqueduct Foundation. Views are his own. [email protected] This article was originally posted at www.allaboutestates.ca CONTINUED FROM PAGE 9
