Tip of the Iceberg
Planned giving is a professional discipline few people imagined as a career option 15-20 years ago. According to their Web site, there are more than 11,000 people supporting the mission of the National Committee on Planned Giving--an organization that didn’t exist 22 years ago. With that kind of explosive growth and interest, a logical person might conclude that it’s time for a plateau or “correction” to occur.
The Tandem Trust Plan
With the combined effect of state and federal income, property, sales, capital gains, excise, use and estate taxation arguably at an all-time high, people (and their professional advisors) have become keenly aware of the need to do income, retirement and estate planning with tax considerations at the forefront.
Determining Donor Motivation
In the world of planned giving, gifts are not always as neat and tidy as they are in the outright giving business. For instance, when a donor gives you cash or stock from a publicly traded company, it’s hard to imagine how the donor has any other motivation than to support your organization.
Working with Professional Advisors
I’ve been in the development and planned giving field for all of my working life. During that time, we’ve witnessed a tremendous rise in the popularity of planned giving. Today, there are many more people living in retirement than there were 20 years ago, wealth among retirees has risen tremendously, and people are more inclined than ever to consider charitable strategies in their overall retirement and estate planning.
Gift Acceptance Issues
It’s December 27. The phone rings in your office. You answer and begin a conversation with someone you don’t recognize as a donor or volunteer with your organization. Early on, the caller mentions that he has been talking with his accountant and he is happy to inform you that your organization will be receiving some commercial real estate in the industrial section of your city before December 31.
Disposition of Qualified Plans: An Opportunity for Heirs and Charity
On occasion, someone will say, “If you put an asset into a charitable trust, because of the increased cash flow, capital gain avoidance and income tax deduction, you will end up better off financially than if you sold the asset and invested the after-tax proceeds.”
Doing Retirement Planning...Again
Americans are living longer, healthier lives. The fitness and health food craze has been embraced by all segments of our society. In fact, it’s not a craze anymore. An increasing number of older Americans routinely exercise and have diets that are low in saturated fat, high in fiber, complex carbohydrates and vitamins. In addition to the emphasis on exercise and diets, medical advancements have contributed to the longevity many people are experiencing as well.
Four Steps in Evaluating CRTs
Let’s face it. Charitable trust planning has become increasingly complex. In 1997 alone, FUP trusts resurfaced--this time with the IRS leading the charge! Capital gain to income NIMCRUTS gained wider popularity last year because of their “total investment return” capability. And, the new capital gain rate tiers have made PGOs even more acutely aware of the need to pay close attention to the type(s) of investments that are selected in CRT arrangements.
When a 10 Percent Remainder Makes Sense
When can a unitrust with a 10 percent remainder value make sense, particularly if the charity is being asked to serve as trustee? The answer: When the funding amount is large enough and the term of years is short. This is particularly true if, as the old adage says, “part of something is better than nothing at all.”
When the Donor’s Advisor Manages CRT Investments
With increasing frequency, prospective planned giving donors and their advisors pose questions to us for which they expect a simple answer. For example: Will your organization serve as trustee, even if it will not be the primary remainder beneficiary of the trust?