September Foundation Update

Never in my 30-year career as a tax and estate planning attorney has there been a greater need for people to consider using charitable giving as part of their estate plan and income tax planning. After several years of a bull market-fueled growth, many people now find themselves looking forward with anxiety about potential changes in the tax code.

 

Some changes that they hear about range from a substantial increase in income taxes, to the reduction or elimination of the step up in basis for capital gains transactions, to a new estate tax structure … and who knows what else. It is a mathematical certainty that income tax alone is insufficient to manage our nation’s debt and deficit. Increasingly, commentators are looking toward the imposition of broader-based wealth taxes.

 

Many people finding themselves blessed with significant balances in their retirement savings, brokerage accounts, or real estate investments feel trapped. They want to make changes that reduce their current income taxes and these future wealth taxes. They want their life savings to go to the people and places meaningful to them.

 

Charitable planning by incorporating current gifting strategies, testamentary gifts, or gifts in trust can provide powerful tools to create a path forward and eliminate the anxiety caused by this uncertainty. There are significant current and future income tax benefits to be made through charitable planning. For example, as you approach the end of the year and find yourself again forced to take Required Minimum Distributions, which you do not need, you may want to consider making a qualified charitable deduction to avoid the increase in income taxes.

 

If you need any more information on these tools or find yourself pondering the inclusion of charitable planning in your estate, please feel free to reach out to Paul Anderson. The Foundation would be grateful for an opportunity to speak with you and perhaps be included in those plans.