Individuals who are considering gifting their interest in a closely-held business entity may want to consider making such gift sooner rather than later in light of the proposed regulations issued by the IRS on August 2 regarding valuation for estate and gift tax purposes of certain transferred assets.
No matter who wins the White House in November, the new president’s agenda will include tax reform. But changes to our tax laws need not wait until after inauguration day, as we learned four years ago when the “fiscal cliff” was averted by a lame duck session of Congress passing the American Taxpayer Relief Act of 2012. For those interested in philanthropy, there are a few pieces of tax legislation aimed at our charitable sector that had bipartisan support before the political conventions and – with some urging – may receive congressional attention in the closing weeks of 2016. Continue reading
Now that sunshine and blue skies are upon us, people are opening their summer homes for the season. Happy memories of family vacations and gatherings often motivate parents to seek out ways to preserve their second home for their children, grandchildren, and great-grandchildren. Whether you’ve got a compound on the Cape or a cabin on Winnipesaukee, it’s an appropriate time to think about how these properties currently fit into your estate plan. It’s also crucial to consider how such decisions will affect those who love and use these properties now and might want to continue doing so after you’ve passed away. Continue reading
During the Perkins School for the Blind annual fundraising gala, Perkins Possibilities 2016, we witnessed the launch of the powerful social change campaign called BlindNewWorld. The campaign aims to help the sighted population break down barriers to blind inclusion like discomfort and fear and create a more blind-friendly world. This got us thinking: how can we do a better job of taking the needs of clients who are blind or visually impaired into account when designing our estate planning services? We came up with three ideas we want to share. Continue reading
From April 9 to April 12, I had the good fortune to be part of the Council on Foundations 2016 Annual Conference. The Council welcomed nearly 1,400 leaders in the philanthropic sector to Washington, D.C., for plenary programs and concurrent sessions focused on “the Future of Community through the lenses of identity, purpose, and place.” Here are four of my biggest takeaways from the Conference:
1. When you want to fill a room to capacity, talk about the Chan Zuckerberg Initiative. One concurrent session was so popular that attendees filled the seats, stood along the walls and sat on the floor. The topic that drew this crowd was “Philanthropy Outside the Tax-Exempt Model.” The discussion covered the alternative vehicles for individual and corporate giving, such as public benefit corporations, L3Cs and B-Corp certified companies, which have been embraced by a new generation of philanthropists, most notably Mark Zuckerberg and his wife Dr. Priscilla Chan.
3 Things to Remember About Documenting Charitable Gifts of Property, Securities and Art.
Last month in this blog, we described five ways to be diligent about documenting charitable gifts of cash or out-of-pocket expenses to preserve your tax deduction. But what about gifts of property – does giving something other than cash change the taxpayer’s responsibilities? According to the tax regulations, the answer is no and yes. Continue reading
5 Ways to Be Diligent with Charitable Gifts of Cash
Remember that formal benefit dinner you attended last fall? The contentious battle for that golf package at the charity auction in the spring? Your donation to the bike-a-thon over the summer? For many, expenditures like these can add up to hundreds, even thousands, of dollars throughout the year. But – surprise! – income tax deductions are not always available or can easily be lost if you are not diligent about your recordkeeping. With the April 15th deadline to file (or extend) income tax returns fast approaching, many of us need a reminder of what is required to claim income tax deductions for the charitable contributions of cash we made last year.
Every Massachusetts homeowner should be aware of the opportunities that are available for protecting the equity in the family home. A recent bankruptcy case, In re: Nealon, reminds us of one such opportunity – the Massachusetts homestead exemption — and its power to stave off creditors, especially when the homeowner takes the simple steps necessary to maximize the amount entitled to protection.
Somewhere on every grown-up person’s to-do list is an entry that reads something like “tackle estate plan.” You may even find it among your New Year’s resolutions. The prospect of planning your estate with an attorney can be daunting, but the process itself – once you commit to doing it – can be easier than you might imagine, especially if you go into the first meeting prepared.
Foundations are effective vehicles for families who want to make a collective philanthropic impact now and for generations to come. Traditionally, foundations have achieved this impact solely through strategic grantmaking. A growing number of foundations are looking for ways to go further, however. These foundations seek strategies that will allow them to deploy their investment portfolios – in addition to grantmaking – to advance their charitable missions without hurting the value of their endowments long-term. One such strategy, using “mission-related investments” or MRIs, is trending in the press and at sector conferences, but most foundation directors and trustees have yet to jump on its bandwagon. New guidance from the IRS may change that.