Leaving a legacy that will have a positive impact after we are gone is a noble but challenging aspiration to fulfil. When pursuing such a goal, legal solutions to estate planning and trusts may not be the first thing that comes to mind.

Yvon Chouinard, the founder of the popular outdoor gear brand, Patagonia, recently made headlines with dramatic changes to the ownership structure of his company.

A long time supporter of environmental causes, Mr. Chouinard transferred ownership of 98% of Patagonia, representing the entirety of all non-voting shares, to a non-profit trust. This trust, the Holdfast Collective, states it was founded with purpose to fight the environmental crisis, protect nature and biodiversity and support thriving communities.

Holdfast Collective’s shares in Patagonia will entitle them to an estimated $100 million in yearly dividend payments which will be applied towards the trust’s environmental causes

The remaining 2% of shares hold the voting rights, and, as such, effective control over the day-to-day management of the company. The groundwork for this transfer (i.e. the establishment of the trust) took nearly two years to complete.

Creating a trust of the scale and scope of the Holdfast Collective is outside the reach of most people; however, there are various solutions that allow one’s estate to be directed to good causes. 

Continuing with the theme of environmental ideals behind the  Holdfast Collective, “green” solutions to estate planning can take the form of charitable donations, with creative possibilities such as land trusts, or eco-friendly burials. 

There are a wide variety of approaches to chartable planning for an estate, and it can be helpful to consult with qualified estate and tax professionals, among others, on the best solution for each situation

Thank you for reading and have a great day!

Raphael  Leitz