Where the Money Is—Lifetime Charitable Gifts of Retirement Assets
In medicine, Sutton’s law refers to the principle of going straight to the most likely diagnosis. Going to the heart of the matter is forever linked with bank robber Willie Sutton, who, when asked why he robbed banks, famously replied, “Because that’s where the money is.”[i] Put Willie Sutton in the 21st century and he …
Charitable Gifts of Business Interests: 1% Inspiration, 99% Planning
Thomas Edison received 1,093 patents for his life’s work and is renowned as one of history’s greatest inventors. His creations were not happenstance; rather, they resulted from hard work and planning. Edison noted: I never did anything worth doing entirely by accident… Almost none of my inventions were derived in that manner. They were achieved …
One-Hit Wonders: The Unique Charitable Gift
Do you remember Sir Richard Harris’ hit MacArthur Park? How about The Knack’s My Sharona…Barry McGuire’s Eve of Destruction…Dexys Midnight Runners’ Come on Eileen…the ubiquitous 90’s anthem Who Let the Dogs Out by the Baha Men? If not all of these songs or artists are familiar, that is not necessarily a surprise—each was the only …
Impact of the American Taxpayer Relief Act of 2012
In addition to its impact on charitable giving, the American Taxpayer Relief Act of 2012 (ATRA) has two salient features: Permanence. Unlike prior tax legislation, ATRA does not contain a “sunset” provision that effectively repeals the law at the end of a set term. Instead of waiting for Congress to act or guessing what Congress …
Upcoming Changes in the Federal Tax Law
The upcoming changes in the federal tax law effective January 1, 2013, are extensive and will increase taxes across the board (especially for high-income taxpayers). There are several reasons why: The expiration of the Bush-era tax cuts The new surtaxes and a limit on medical expense deductions that are part of the 2010 healthcare law …
Deciding “How to Give” Starts with Deciding “What to Give”
Charitable giving is often a regular part of financial and estate planning. Individuals who have integrated philanthropic goals into their overall estate plans have already answered the question Will I give? The key to achieving those goals lies in the answer to the question How will I give? This discussion of “how” turns on what …
Charitable Bequests and Different Aspects of Testamentary Giving
Charitable bequests are by far the most popular kind of planned gift. By including a charitable bequest in a will, a testator makes a final statement in support of a qualified charity. Yet, the importance of charitable bequests is often understated; some view a bequest as simpler and less substantial compared to lifetime planned giving …
Federal Taxes: The Cliffhanger Edition
“To Be Continued…” Few things are as tantalizing and concurrently as maddening as the “cliffhanger.” For centuries this time-tested plot device has kept audiences waiting and anticipating. While the cliffhanger is a compelling narrative technique, does it have a place in federal tax policy? In December 2010, Congress passed and the President signed the Tax …
Life Income Gifts: Comparing Charitable Gift Annuities and Charitable Remainder Trusts
Making choices is a part of everyday life. Do you drive or take the train? Do you skip lunch so you can leave work early enough to catch your child’s school concert? Do you work this weekend to assure the bonus that would pay for the vacation to Tuscany you promised your family? From the …
Testamentary Trusts and Charitable Giving
A testamentary trust can enhance a comprehensive estate plan. Including a trust in a will permits the testator a modicum of control over the distribution of estate assets, which an outright bequest cannot provide. Married couples rely on certain types of testamentary trusts to preserve assets in the estate. Transfers to trusts that qualify for …