Planning Your Gift
Opportunities in Uncertain Times
Committee on Development Meeting
June 4, 2010
Opportunities abound in these uncertain times. Each of us must be aware of them and think like savvy charitable entrepreneurs as we speak with others interested in Hamilton.
Advise friends to be sure their estate plans are up to date in this year of transition and beyond.
Gift taxes are lower this year than in 2009 and 2011. Generation Skipping Transfer Taxes are suspended (along with the estate tax) in 2010.
Consider asset transfer strategies, gifts to heirs, grantor retained trusts, and charitable lead trusts.
Charitable Gift Annuity rates for most ages increase July 1, 2010. Hamilton offers rates recommended by the American Council on Gift Annuities. Annuities in force do not change.
Charitable Gift Annuities are attractive because the donor receives a fixed payment for life.
Contribute appreciated securities and real estate held long term:
Claim a deduction for fair market value
Avoid recognition of long-term gain.
Suggest stock contributions in advance of merger and acquisition activity, e.g. Burlington Northern.
Employ the following strategies enhanced by a historically low, and expected to increase, capital gains tax rate. Refer to Planned Gift Solutions, on the Planned Giving website:
Contribute some securities, sell some securities, using deduction to offset gain.
Lock in the current value of securities.
Reinvest/diversify assets in a tax wise way.
Increase your cost basis in a stock.
Make assets productive/simplify estate administration by contributing a:
Vacation home in a charitable remainder trust.
Remainder interest in your home, while retaining life use.
Highly appreciated, low-yielding asset to a charitable remainder trust.
Look for life-time contributions of IRAs for individuals 70 ½ years of age to be extended for 2010.