Kirk Douglas, who died at the age of 103, gave the majority of his estimated $61 million fortune to charity. According to a new report by The Mirror, the Douglas Foundation will donate $50 million to St. Lawrence University (Douglas’ alma mater), Sinai Temple of Westwood, the Kirk Douglas Theatre, and Children’s Hospital Los Angeles, all of which he and his wife, Anne Douglas, have previously supported through the Douglas Foundation. Anne, who is 100 years old, is still the managing trustee. According to its website, the foundation’s mission is “to aid those who cannot otherwise help themselves.”
Douglas, the son of Jewish immigrants, grew up in poverty. As a way to give back, he gave money to many schools, hospitals, and charities, including his old high school in Amsterdam, New York, and causes in Southern California and Jerusalem.
It’s unknown where the rest of his riches will go, though it’s been rumored that his son Michael, also a well-known actor, will not inherit (no mention was made of whether his other two less famous sons were included in the will). Unlike many other legends about family feuds leading to disinheritance, this does not appear to be the case here. On Instagram, Michael paid tribute to his late father, honoring his legacy as an actor and humanitarian. And, with an estimated $300 million wealth of his own, it doesn’t appear like Michael needed the extra cash.
It also appears that the choice to donate the fortune to charity was not unexpected; in a 2015 interview with The Hollywood Reporter, Douglas and his wife described their foundation and their intention to spend the money for charitable purposes. In the interview, Douglas commended his business-savvy wife, who established a trust decades ago. “I want to give it away,” Douglas stated after learning that the trust had amassed $80 million at the time.
In case you were wondering, the kind of generosity indicated by Douglas “does happen, but not very regularly,” according to Jeff Swett, managing director of UBS Financial Services’ The Swett Group in Boston. “Typically, people will leave at least some of their fortune to their children, or other family members if they do not have children.”
Swett notes that donor-advised funds (DAFs), charitable remainder trusts (CRTs), and direct contributions of highly appreciated stock are the most prevalent means of gifting. Swett went on to say that all strategies have advantages, and that “the most appropriate option typically relies on the clients’ objectives and family dynamic.” Clients appreciate the flexibility of DAFs and can make donating a family affair by naming the next generation as successor trustees. We’ve seen clients set up scholarships in their family’s name by distributing a portion of their DAF each year. These kinds of DAFs can last in perpetuity and provide a meaningful legacy. “CRTs, on the other hand, are useful when the goal is to give the money to charity later, but first earn current income for a number of years.”
“We frequently advise clients to donate at least a portion of their wealth while they are still alive.” “This way, students may enjoy the process while also taking satisfaction in the advantages and happiness they offer to others,” Swett noted.
Swett emphasizes the need to encourage family planning and incorporate younger generations into the process as soon as feasible, as most estate planning specialists do. Not only does this help to avoid surprises, but it also helps the children to take responsibility for the gifts. “When it’s articulated correctly,” Swett says, “survivors are often open and happy to contribute to their family’s charity goal.”