As we advised in last month’s newsletter, the “Secure Act” was part of a larger law that passed with (rare) bipartisan support in late-December 2019. It was effective January 1, 2020, for most purposes. This is the second in a series of articles on the Secure Act. The first article looked at the basics of the Secure Act. This article examines planning strategies for dealing with the Secure Act. As laid out in the first article in the series, the Secure Act requires more rapid distributions of … [Read more...]
Let’s Talk About Charitable Trusts
Typically, charitable lead trusts and charitable remainder trusts are implemented when your estate exceeds the federal estate tax exemption. This qualifies both charitable trusts as “advanced” estate planning tools. Besides lessening or totally avoiding the federal estate tax, there are income tax, capital gains tax, and charitable intent benefits as well. Simply put, the charitable lead trust provides an income stream to your favorite public charity for a period of years (up to 20) or … [Read more...]
FAQ: Charitable Planning
You may think that charitable planning has sunk into nonexistence. The extremely large (i.e. $11.18 million in 2018 an) lifetime federal estate exemption has made many question the need for charitable planning. However, charities are pleased to announce that charitable giving remains strong in the United States. What are the common ways to participate in charitable giving? Lifetime gifts Private foundations Donor advised funds Bequests Charitable remainder trusts … [Read more...]
Trusts Can Satisfy Many Different Objectives
The importance of trusts in estate planning is seen in their ability to minimize estate taxes and hopefully avoid probate. A trust is basically a fiduciary agreement, one based on trust and confidence, between the person making the trust (grantor) and the trustee. This agreement gives the trustee the authority to manage the assets of the trust and distribute those assets to the beneficiaries as specified in the trust agreement. There are several different types of trusts with their own … [Read more...]
Free Report: Charitable Gifting in California Through Your Estate Plan
A charitable gift annuity also offers benefits to the donor as well as to a designated charity. As the donor, you would make a one-time gift of cash or securities (though some states allow gifts of property or closely held stock as well) to a charity. In return, the charity will provide you with annuity payments for life from the charity. You determine when the annuity payments begin. Topics covered in this report include: The Gift and Estate Tax Tax Benefits of Gifting Direct Gift Family … [Read more...]
Thinking of Charitable Giving? Consider a CRT
Estate planning is more than creating a will or thinking about the kinds of advance medical directives you want to have in place. It’s also about considering how you want to be remembered after you die and whether you want to make charitable donations a part of your legacy. If you are thinking of giving to charity through your estate plan you may want to consider a CRT, short for a charitable remainder trust. While these trusts are a little complicated and you should discuss them in more depth … [Read more...]
A Charitable Trust – Not Just For The Wealthy
For many people, the chance to use your wealth to support a worthy cause or charity is one of the great joys of developing an estate plan. While you can choose to give gifts now or donate them through your estate, you may want to consider establishing a charitable trust. Charitable trusts give you a wide range of options when choosing how to leave your gift, and they are not only for the wealthy. If you haven't thought about a charitable trust before, here are several issues you may want to … [Read more...]
The Government Will Not Inherit Your Property – 3 Facts About Escheat
There are several myths and misconceptions surrounding estate planning that sometimes pop up. For example, some people believe that the state of California will inherit your property if you don't make a will or create some kind of estate plan. While this is possible, it is very rare. The process through which the state inherits someone's property is called escheat. Let's take a look at it and why it rarely happens. You can choose who inherits your property. In order to pass on your property … [Read more...]
What is a Donor Advised Fund?
Bill Gates and Warren Buffett have issued a challenge to the world’s most wealthy individuals. They asked their fellow billionaires to make a pledge to give away at least half of their wealth to charitable causes over the course of their lives.Both of these gentlemen have practiced what they preach. Gates has donated billions of dollars to his own Bill and Melinda Gates Foundation. Buffett has given Berkshire Hathaway stock valued at over $10 billion to the Gates Foundation over the last … [Read more...]
Five Lesser Known Benefits of Good Estate Planning
Everyone knows that an estate plan can ensure your chosen beneficiaries receive the right inheritance. But did you know there are other benefits too? Here’s five things a good estate plan can for you. Protect Against Disability – No, your estate plan can’t prevent disability from striking but it can certainly ensure that you and your estate are protected if it happens. Using an Advanced Health Care Directive and General Durable Power of Attorney can ensure that your medical wishes are … [Read more...]
