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Charitable Giving Archives | Wealthspire Advisors

planning opportunities

Planning Strategies to Consider in a Volatile Environment

By and Blog
While the Coronavirus pandemic has brought its share of fear and anxiety, it also brings some favorable financial planning opportunities that can be of significant benefit for you and your family. Below are some opportunities to consider. 1. Harvesting Capital Losses: An approximate 20% decline in equity markets from the early year high, along with volatility in sectors of fixed income markets have caused security values to decline.  As we periodically rebalance portfolios, in taxable accounts we look to realize capital losses and replace sold positions with similar, but not identical, securities to maintain desired exposures. When we “harvest” capital…
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charitable remainder trust

Charitable Remainder Trusts (CRTs)

By Guides & Whitepapers
What is a Charitable Remainder Trust (CRT)? It is a trust where non-charitable beneficiaries (usually the grantor and grantor’s spouse) receive payments at least annually during their lives or for a number of years, and a charity receives the trust assets remaining at the end of the trust term. A charitable trust is also referred to as a “split interest trust”. This is because the beneficial interests in the trust are “split” between the initial non-charitable beneficiaries and the charitable beneficiaries that receive what remains at the end of the trust term. We will refer to the initial non-charitable beneficiaries…
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QCDs

Understanding Qualified Charitable Distributions (QCDs)

By Blog
Don’t make the loss of a tax deduction your reason for not giving Charitable giving stems from an intrinsic desire to express support for causes that are dear to one’s heart. The U.S. government recognizes the social benefit of charitable giving, as such, the tax code provides a tax deduction that ultimately reduces the givers’ taxable income. While most people don’t give solely to obtain a tax deduction, they may be inclined to give more because of the added incentive the tax deduction provides. The Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction. The increased standard…
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charitable gifts

The Benefits of “Bunching” Charitable Gifts Under 2018 Tax Law

By Blog
Mr. and Mrs. Smith are charitably inclined.  They typically donate about $10,000 per year by way of a donor-advised fund.   Each year the Smiths select about $10,000 of appreciated securities (those with long-term capital gains) from within their investment portfolio, which are subsequently moved in-kind (without liquidation) into their Donor-Advised Fund.   They receive an immediate tax deduction equal to the full fair market value of these positions, and they pay no capital gains tax on the sale of those positions once in the donor-advised account.  The Smiths subsequently recommend that the charitable custodian issue about $8,000 worth of grants to…
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tax law changes

Tax Reform Brings Changes to Popular Deductions

By Blog
Mortgage Interest and Charitable Contributions With 2017 taxes complete for most families, we can turn our attention to the changes in store for 2018. The Tax Cuts and Jobs Act of 2017, passed into law in December, represents significant new changes that will affect many families. We plan to explore a number of issues related to this new tax law in future blogs.  Here I’d like to look at two significant changes to the deductions many people take on their tax return – mortgage interest and charitable gifts.  Please note that though we as a firm have a policy to…
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QCDs

Developing Charitable Goals with a Personal Mission Statement

By Blog
Focusing Your Charitable Activities for a Lasting Impact For many wealthy individuals, charitable donations and philanthropic activity serve as meaningful ways to support causes you are passionate about. It is also common for philanthropy to increase in importance either after a liquidity event or retirement. While contributing monetarily to non-profit organizations is an effective way to earn tax deductions and reduce the size of your taxable estate, the most important reason most people give for their charitable inclinations is a desire to effect real change in an issue about which you feel strongly. Philanthropy can be overwhelming. Donors are bombarded…
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Creating A Better Future: Gifting Strategies for Your Wealth

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Ensuring your money is passed on in the manner you desire is important for individuals who have amassed considerable assets during their lifetime. In addition to establishing a financial foundation for future generations, creating an informed plan to pass on your wealth can greatly reduce your overall income tax burden and save on estate taxes in the future. A financial advisor is prepared to walk you through the strategies that will maximize the continuity of your wealth while minimizing your tax burden. Here are a few strategies for passing on your wealth. Utilize Annual Exclusion Gifts to Transfer Smaller Amounts…
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investing mistakes

Optimize Your Charitable Giving with Donor Advised Funds

By Guides & Whitepapers
In addition to the personal fulfillment many individuals find by supporting charitable causes special to them, a thoughtfully planned and implemented charitable giving strategy can result in greater tax savings and after-tax results. For investors who own appreciated assets such as publicly-traded or privately-held stock, mutual funds, real estate, or a sizeable IRA, there are significant benefits to gifting those assets to qualified charities, instead of writing checks or using a credit card (far beyond credit card rewards!). There are many different vehicles for charitable giving, including direct transfers to a charity, donor advised funds, private foundations, qualified charitable distributions,…
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