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Posted July 20th, 2017

Let’s Take a Look at Charitable Bequest Planning, Part 2

Read Part 1 here. Charitable bequests by the wealthy are often made not only to carry out a philanthropic objective but also to save taxes and maybe also to achieve some other purpose. For example, wealthy individuals often leave wealth to a private family foundation both to avoid estate taxes and to provide downstream heirs… read more

Posted July 7th, 2017

Let’s Take a Look at Charitable Bequest Planning, Part 1

Lots of questions. Here are a few: Is the federal estate tax a concern? Is state law a planning consideration? Does the donor want to bequeath a specific dollar amount or a specific asset or a percentage of his or her residuary estate? Does the donor want to create a restricted endowment? Does the donor… read more

Posted June 6th, 2017

Let’s Take a Look at Gift Annuities, Part 3

There’s one more gift annuity topic we need to consider: the application of federal securities laws to a gift annuity program. This is a two-part discussion. Part 1 is the fact that the 1995 Philanthropy Protection Act (“PPA”), which grew out of a Texas gift annuity transaction, applies federal securities laws to certain planned gift… read more

Posted May 16th, 2017

Let’s Take a Look at Gift Annuities, Part 2

Read part one here. Donors and others often believe charitable gift annuities are like commercial annuities, but the two are different. A commercial annuity is a product that can only be purchased with cash. A charitable gift annuity, on the other hand as discussed last time, is a contractual arrangement that may be funded with… read more

Posted May 4th, 2017

Let’s Take a Look at Gift Annuities, Part 1

A gift annuity is a contract between a donor (or married couple) and a charity, whereby the charity promises to pay an annuity for either one life or two lives. The underlined terms bear consideration. The fact a gift annuity is a contract means a gift annuity is formed by offer and acceptance. The charity… read more

Posted March 24th, 2017

Let’s Take a Look at the Estate Tax Charitable Deduction

The estate tax charitable deduction is different from the income tax charitable deduction in several important ways. First, the estate tax charitable deduction is allowed for a gift (bequest) to a foreign charity, such as a university in England. The income tax charitable deduction is allowed only for gifts to U.S. charities. That’s why some… read more

Posted March 6th, 2017

It’s Important to Know About the “Partial Interest” Rule: Part 3

A lot of “planned” gifts are partial interest gifts that are deductible because of exceptions to the general rule of non-deductibility. For example, the gift of a remainder interest in a qualified charitable remainder trust is deductible. What about gift annuities? These are not partial interest gift plans. A gift annuity simply involves the transfer… read more

Posted August 22nd, 2016

The Importance of Proper Gift Receipts

Let’s take a look at the Durden Case, which case involves $25,171 in cash contributions made by the Durdens to their church in 2007. This is a Tax Court case. The Durdens went to court because the IRS threw out their claimed charitable deduction for these gifts. Let’s be clear. There was no dispute over… read more

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