American Taxpayer Relief Act
Committee on Development Meeting
March 1, 2013
Gift, estate and generation-skipping tax permanence may be the most important element of the American Taxpayer Relief Act. Individuals can plan their estates based upon law that will not change each year. You may proceed with confidence on preparing an estate plan that accomplishes your objectives.
The income tax charitable contribution deduction remains in place, with the Pease limitation, designed to reduce the benefit of income tax deductions, not likely to reduce the value of charitable contributions for most taxpayers. Charitable opportunities:
Gifts of appreciated securities held long-term are attractive for all taxpayers, especially those subject to the higher capital gain tax rate and the 3.8% Affordable Care Act Medicare surtax on investment income.
Charitable gift annuities funded with cash provide donors with large tax-free payments.
Donors age 70 ½ or older, including those who do not itemize, may find the IRA charitable rollover appealing.
Charitable lead annuity trusts and gifts of a remainder interest in a primary residence remain favorable in the current low interest rate environment.
For individuals who established grantor retained trusts in 2012, please contact us for a creative companion approach implemented by a Trustee.