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Annual Giving

Planning Your Gift

2012 Provides Extraordinary Estate Planning Opportunities

Committee on Development Meeting
June 1, 2012

Calendar year 2012 provides extraordinary estate planning opportunities, including:

  • The current gift tax unified credit allows each individual to transfer up to $5,120,000 to heirs. Absent action by Congress, this amount will be reduced to $1,000,000 for 2013.
  • In the remaining months of 2012, a prudent individual who has already used his/her $1 million gift tax exemption now has an additional $4,120,000 to use for gifts. Various trust options can be utilized.
    • Spousal Access Trust - Benefits include asset protection, estate tax protection, direct descendent protection, and income shifting.
    • Irrevocable Life Insurance Trust - None of the assets of an ILIT will be included in the individual’s taxable estate, making them free of both income and estate tax.
    • Dynasty Trust - The grantor is allowed a lifetime generation skipping transfer (GST) exemption on the first $5,120,000 of taxable transfers to a skip person or to a trust that could benefit a skip person. A husband and wife can combine their GST exemptions.
    • Income Shifting Trusts - Parents can move up to $10,240,000 in income-producing assets gift tax-free to their children who can then use the income to invest or purchase insurance.
  • After utilizing the $5,120,000 exemption, it may be advantageous to give away more and pay the gift tax at the current 35% gift tax rate.
  • A Charitable Lead Annuity Trust (CLAT) allows the donor to transfer assets to heirs and benefit Hamilton in the meantime.

Jeff Little ’71 was very much aware of the golden opportunity 2012 provides and after much consideration, he and Claudia recently established a CLAT to benefit Hamilton. The CLAT payments to Hamilton will be used for arts facilities.

You are encouraged to consult your advisors about your personal planning and philanthropic goals.

At Your Service

Hamilton makes a number of resources available to you, including the following:

Email Ben Madonia '74 or Joni Chizzonite or call 1-866-729-0317 for more information.