First and foremost, the Bicentennial Initiatives campaign goal – to add 200 Joel Bristol Associates – was surpassed, with 275 individuals completing a planned gift or providing for Hamilton in their estate plans.
Recent Planned Giving Minutes have focused on the benefits of gifts of appreciated property, especially securities, which remain very attractive at this time.
During 2012, estate and financial planning advisers encouraged non-charitable asset transfer strategies, including grantor retained trusts of all types, with the Grantor Retained Annuity Trust (GRAT) the most popular. Individuals were encouraged to use the Gift Tax Credit allowing the transfer of up to $5.12 million. Tax legislation passed at year-end kept the Gift Tax Credit at the 2012 level and indexed it for inflation, increasing the credit to $5.25 million this year.
Anyone who established a GRAT last year might consider a gift similar to the plan implemented by Dick ’44 and Patsy Couper some years ago. After they established a GRAT, which provided payments to themselves for a period of years with the remainder value plus appreciation delivered to heirs at significant gift and estate tax savings, they created a charitable remainder trust that:
• provided an immediate income tax charitable contribution deduction;
• saved capital gains taxes;
• allowed the principal to grow tax-free in a diversified portfolio; and
• replaced the income stream from the GRAT when its distributions ended.
Ultimately, Hamilton will benefit from the remainder value of the charitable trust. This innovative planning was a win-win for the Coupers, their heirs and the College.
Hamilton makes a number of resources available to you, including the following: