Gift Planning Tips

April 15: It’s Not the Only Tax Deadline to Remember
Advisers should determine, when reviewing clients’ 2017 income taxes, whether clients have paid in enough in withholding or timely estimated payments to avoid penalties for underpayment of taxes during the year . . . more

If Itemized Deductions Are Cut Back
Currently, about 30% of taxpayers itemize their deductions, but proposals being considered in Congress might reduce that to only about 5% . . . more

Using Closely Held Stock in Charitable Lead Trusts
Unlike charitable remainder trusts, lead trusts are not tax-exempt entities, so capital gains are not avoided if the plan is to redeem the shares after transferring them to an inter vivos lead trust . . . more

Encouraging Younger Family Members to Save
Clients who take advantage of the $14,000 gift tax annual exclusion [Code §2503(b)] to make tax-free gifts to children and grandchildren (increasing to $15,000 in 2018) may want to encourage the use of some of these funds to establish IRAs . . . more


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To download a PDF of the latest gift planning articles from CGTS Analysis & Comment, click here.

The following articles are now available from the latest edition of the Charitable Giving Tax Service Analysis & Comment. To see the complete text, just click on the above link. Archived articles, and the full 1200-page gift planning library are available at no charge if you register and sign in to CGTS-Online, using the link on this page.

IRS EXTENDS ANNUITY TRUSTS A LIFELINE
Inclusion of sample language avoids 5% probability test.

COURT DENIES DISTRIBUTIONS OF PRINCIPAL
Trust terms don’t provide for invasion of corpus due to financial need.

CHARITY GIVEN GREATER INVESTMENT OPTIONS
Restrictions resulted in minimal return, hampering decedent’s intent.

FAMILY’S ACTIONS, NOT BUSINESS CLIMATE, CAUSE DROP IN VALUE
Stock exchanged for promissory notes at discounted amount.

COURT REJECTS ATTEMPT TO “SWAP” BEQUESTS
Spouse stuck with IRA and income in respect of a decedent.

NO RELIANCE, NO PLEDGE
Charity’s claim against estate denied.

TAX ON IRD OFFSET BY DEDUCTION
Trust will receive cash from testator’s IRAs.

ORGANIZATION CHANGES USE OF CONTRIBUTED FUNDS
Donors want funds returned if not used as promised.

CHARITY CAN SUE ATTORNEY FOR ERROR IN WILL
Organization was intended beneficiary of instrument.


November 2017 Archive
• Change–Your-Mind Options for Charitable Remainder Trusts
• When Does a Term–of–Years Trust Make Sense?
• Accelerating the Remainderman’s Benefit
• Year–End Charitable Gift Planning

October 2017 Archive
• So Many Choices
• Best Candidates for Qualified Charitable Distributions
• Minimizing Taxes from Like-Kind Exchanges
• Income Tax Considerations in Charitable Bequests

September 2017 Archive
• Plan Ahead for Avoiding Tax on Group Term Life Insurance
• Taking the Pledge
• Advancing Lead Trust Payments
• Charitable Gifts That Avoid Year-End Cash Crunch Problems

August 2017 Archive
• Still Going Strong after Five Decades
• Let’s Make a Deal
• S Corporation Shares and Charity
• Special Handling Required

July 2017 Archive
• When Clients Want to Give "Things"
• Combining Marital, Charitable Deductions for Estate Tax Savings
• Coping with a Client’s Spendthrift Children
• Planning for the S-L-O-W Rise in §7520 Rates

June 2017 Archive
• No Charitable Deduction? No Problem
• Comparison of Split–Interest Gifts
• Going Out of Business Gifts
• Options Abound for Gifts by C Corporations


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