Generally speaking, planned gifts represent gift options that can be designed to meet your personal philanthropic and financial goals. Some planned gifts, such as a gift in your will, require no current outlay of funds at all. And other planned gifts, including the charitable gift annuity, make it possible to support our work, enjoy a tax deduction if you itemize, and receive a lifetime income at the same time.

In this unpredictable and challenging economic climate, a planned gift can be a rewarding way to make a difference in others’ lives. Please contact us if we can provide more information or help you in any way.

P.S. We invite attorneys, CPAs, financial planners, and other professional advisors to click the “Professional Advisors” link to use our Planned Giving Answers Online program. It provides more detailed information about planned giving concepts and techniques.

Two Laws Impact Planning

Passed at the end of 2019, the SECURE Act was enacted to strengthen retirement security. A few months later (March 2020), the CARES Act was passed. While the CARES Act was designed to provide economic stimulus and relief for businesses, some provisions of the Act can impact planning in 2020.

Whether you see your personal planning needs as complex or fairly straightforward, it’s important to be aware of the key provisions of these Acts.

Under the CARES Act:

  • RMDs are suspended for 2020.
  • The individual limitation for deductible cash gifts is raised from 60% to 100% of adjusted gross income in 2020.
  • Non-itemizers are eligible for a $300 above-the-line deduction (total) for cash gifts to charity.

Under the SECURE Act:

  • Required minimum distributions (RMDs) from qualified accounts must begin at age 72 instead of age 70½.
  • Contributions can be made to an IRA after age 70½ when taxpayers have compensation. However, contributions after age 70½ count against qualified charitable distribution amounts.
  • Non-spouse beneficiaries of an IRA (or other qualified account) must now take distributions within a 10-year period—stretch IRAs are no longer permitted.

We can provide additional information about the provisions of these laws and how they impact planning. It would be our privilege to work together to explore possible gift options that may work best in your personal situation. Please contact us if we can help you in any way.