Americans are some of the most generous givers on the face of the planet. They reach into their pockets and take out their checkbooks on behalf of others more often than any other industrialized nation.
Top 10 charitable planning strategies for financial advisors under the new ta...Russell James
This presentation gives the top approaches to helping your clients and growing your practice using charitable planning with special tips related to the new tax law. Participants will learn how to provide tremendous benefit to clients, while improving their own assets under management, with charitable planning. Topics include gifts from retirement plans, gifts of appreciated assets, the use of private foundations, and life insurance.
These slides are taken from the graduate financial planning course "Introduction to Charitable Planning" at Texas Tech University. Details at www.EncourageGenerosity.com
What exactly is the charitable deduction? The charitable deduction allows you to take off the value of property you offer to charity from your property and might minimize any federal gift and estate tax that might be owed. Charitable gifting allows you to satisfy your personal philanthropic desires and satisfy your estate planning objectives.
What Are the Tax Benefits of Charitable Giving? - Worth MagazineCBIZ, Inc.
John Sheridan, (CPA, Senior Manager at CBIZ) wrote a piece published to Worth Magazine on how charitable giving will affect your taxes. Be sure contact John should you have any further questions.
Top 10 charitable planning strategies for financial advisors under the new ta...Russell James
This presentation gives the top approaches to helping your clients and growing your practice using charitable planning with special tips related to the new tax law. Participants will learn how to provide tremendous benefit to clients, while improving their own assets under management, with charitable planning. Topics include gifts from retirement plans, gifts of appreciated assets, the use of private foundations, and life insurance.
These slides are taken from the graduate financial planning course "Introduction to Charitable Planning" at Texas Tech University. Details at www.EncourageGenerosity.com
What exactly is the charitable deduction? The charitable deduction allows you to take off the value of property you offer to charity from your property and might minimize any federal gift and estate tax that might be owed. Charitable gifting allows you to satisfy your personal philanthropic desires and satisfy your estate planning objectives.
What Are the Tax Benefits of Charitable Giving? - Worth MagazineCBIZ, Inc.
John Sheridan, (CPA, Senior Manager at CBIZ) wrote a piece published to Worth Magazine on how charitable giving will affect your taxes. Be sure contact John should you have any further questions.
This paper explores Charitable Remainder Trusts as a retirement strategy for real estate investors, and how to maximize its effectiveness. Using principles rooted in the Prosperity Economics Movement, a CRT can be a great choice without fear of disinheriting heirs.
IT’S IRA SEASON – SAVE FOR RETIREMENT WHILE ENJOYING TAX BENEFITSSpencer Savings Bank
As a group, Americans are not doing well in preparing for retirement. Research shows that most Americans do not have enough money saved for retirement and many are very concerned. One of the main reasons for lack of saving are incomes that have not changed (or decreased) over the years, while cost of living continues to rise and salaries are not going as far as they once did to cover all the necessities.
To properly write a provisional patent application, it should have 1) a complete description of how the invention works and 2) a set of technical drawings that help explain how the invention works. The key concept is that a provisional patent application must fully describe how the invention works, including the components that make up the invention and how the components are arranged. If any portion of the invention is not clearly described, it is not protected!
When you Retire you’ll either have the money or reasons why you don’t.
It’s all about planning. Your behavior and attitude today will impact your cash results for tomorrow.
For Those Who Want to Prosper & Thrive in Retirementfreddysaamy
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Our core capital should be designed to outlive us. In fact, it’s important for you to start thinking about your money in terms of it outliving you, not the other way around. You don’t want to outlive your money.
How to be a philanthropist, and did you know you could?Susan Diamond, MSW
The greatest transfer of wealth is occurring now with an estimate 16 T forecasted to transfer by 2026 and 41T by 2052. 80 % philanthropy comes from individuals. Now is a crucial time to educate and help donors/funders identify their capacity to give.
Asset Protection: Reducing Risk, Promoting Peace of Mind HayesLaw
Every American adult shares a dubious characteristiceach is a walking litigation target. Part of your birthright is that you may be sued at any time, for any reason, and for any amount.
Women have unique financial issues and needs. This presentation discusses 15 of the most common misconceptions women have about general financial strategies, retirement and estate planning, insurance, as well as money and relationships. It provides guidance on strategies to help women manage their finances.
Responsibilities of the office bearers while registering multi-state cooperat...Finlaw Consultancy Pvt Ltd
Introduction-
The process of register multi-state cooperative society in India is governed by the Multi-State Co-operative Societies Act, 2002. This process requires the office bearers to undertake several crucial responsibilities to ensure compliance with legal and regulatory frameworks. The key office bearers typically include the President, Secretary, and Treasurer, along with other elected members of the managing committee. Their responsibilities encompass administrative, legal, and financial duties essential for the successful registration and operation of the society.
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
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RIGHTS OF VICTIM EDITED PRESENTATION(SAIF JAVED).pptxOmGod1
Victims of crime have a range of rights designed to ensure their protection, support, and participation in the justice system. These rights include the right to be treated with dignity and respect, the right to be informed about the progress of their case, and the right to be heard during legal proceedings. Victims are entitled to protection from intimidation and harm, access to support services such as counseling and medical care, and the right to restitution from the offender. Additionally, many jurisdictions provide victims with the right to participate in parole hearings and the right to privacy to protect their personal information from public disclosure. These rights aim to acknowledge the impact of crime on victims and to provide them with the necessary resources and involvement in the judicial process.
ASHWINI KUMAR UPADHYAY v/s Union of India.pptxshweeta209
transfer of the P.I.L filed by lawyer Ashwini Kumar Upadhyay in Delhi High Court to Supreme Court.
on the issue of UNIFORM MARRIAGE AGE of men and women.
Car Accident Injury Do I Have a Case....Knowyourright
Every year, thousands of Minnesotans are injured in car accidents. These injuries can be severe – even life-changing. Under Minnesota law, you can pursue compensation through a personal injury lawsuit.
ALL EYES ON RAFAH BUT WHY Explain more.pdf46adnanshahzad
All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
3. Charity Begins At Home 1
HOW TO DO WELL FOR YOURSELF BY DOING GOOD FOR OTHERS
Americans are some of the most generous givers on the face of the planet. They reach into their
pockets and take out their checkbooks on behalf of others more often than any other
industrialized nation.
It’s quite possible that tax breaks are one reason why. According to a study by the Washington
D.C.-based Independent Sector, tax breaks are important, both to the givers and the receivers.
For example, the study clearly shows that giving goes up dramatically when a tax break is
available to the donor. People who itemize their tax returns give an average of 3.5 times more to
charity than those who do not itemize. And itemizers who intend to claim a charitable deduction
give 6.1 times more than those who don’t intend to claim the deduction.1
Nationally, charitable contributions make a thunderous plunk in the collection plate. In 2017,
individuals were the largest source of charitable giving, contributing a total of $286.65 billion. 1
American corporations followed suit, and gave a total of $20.77 billion.
The recipients of this largesse depend heavily upon American generosity. There are
approximately 1.6 million tax-exempt organizations in the United States. Public charities reported
in excess of $1.73 trillion of total revenues in 2015, with a large percentage of that total coming
from contributions, gifts and grants. 2
So, there’s a lot at stake for all concerned when it comes to encouraging charitable giving in
America. And the Charitable Remainder Trust is one of the most popular ways Americans can
donate to their favorite cause while doing well for themselves and their families.
HOW THE CHARITABLE REMAINDER TRUST WORKS
Whether you are a budding philanthropist looking for the best way to contribute to society, or
an investor looking for strategies to maximize income and tax breaks, the Charitable Remainder
trust offers a powerful solution to your needs. It combines current charitable income tax
deductions and future estate tax deductions with the opportunity to avoid capital gains tax on a
highly appreciated asset. It then goes one step further to provide you with a new source of
income.
A Charitable Remainder Trust delivers best results when benefactors have a highly appreciated
asset—such as real estate or stocks—that provides little or no income.
1
https://www.nptrust.org/philanthropic-resources/charitable-giving-statistics
Giving USA 2016, The Annual Report on Philanthropy for the year 2016
2
https://www.urban.org/sites/default/files/publication/72536/2000497-The-Nonprofit-Sector-in-Brief-2015-
Public-Charities-Giving-and-Volunteering.pdf (2015)
4. Charity Begins At Home2
Owning such an asset is a double-edged sword. You can’t sell the asset without experiencing the
costly bite of state and federal capital gains taxes. On the other hand, if the asset is still in your
estate when you die, it will increase your estate taxes.
Of course, you could donate the asset directly to charity and gain an immediate charitable income
tax deduction. In one fell swoop, you’d reduce the value of your estate—and thus future estate
taxes—as well as avoid capital gains taxes. But you’d miss out on an opportunity to maximize
your income.
The Charitable Remainder Trust neatly overcomes these problems.
When you create your Charitable Remainder Trust, you transfer your highly appreciated asset to
your trust. The asset is usually sold, with the proceeds used to buy income-producing
investments. Then, each year for the rest of your life, you’ll receive income from your Charitable
Remainder Trust. When you die, your designated charity will receive whatever remains in your
trust. Hence the name: Charitable Remainder Trust.
The incentives for using the Charitable Remainder Trust include:
• An immediate charitable income tax deduction based upon the fair market value of the asset
given away (reduced by your received interest—or future income and subject to normal
percentage limitations applied to itemized deductions);
• An opportunity to put the full value of your appreciated asset to work for you and avoid the
costly impact of capital gains taxes;
• A new source of income;
• And a charitable estate tax deduction on the full fair market value of the asset you’ve donated
to the charity when you die.
It may sound like the Charitable Remainder Trust is a complex legal tool. But just the opposite is
the case. Working with your estate planning attorney, you can set one up in fairly short order.
After deciding which charity you want to support, you then decide who will serve as trustee. The
trustee can be you, a bank or trust company, or anyone else of your choosing. The trustee will
assist in the valuation of the asset you contribute and will follow your precise directions laid down
in your trust documents.
Next, you decide who will receive income from your Charitable Remainder Trust and for how
long. This isn’t optional; it’s mandatory. According to the IRS, at least one beneficiary other than
5. Charity Begins At Home 3
the charity must receive income each year. So, determine if you will be the only beneficiary, or if
your spouse or children will receive income after you die. Lastly, you decide how you want to
receive your income, and how much you will receive each year.
GIVE AND YOU WILL RECEIVE
Your answers to these last questions will prove critical in determining exactly what type of
Charitable Remainder Trust you choose. Which one will depend on your temperament as an
investor?
For instance, conservative investors who want a predictable income year after year may prefer
the Charitable Remainder Annuity Trust—or CRAT for short. You may make only one contribution
to your CRAT, which will provide you a fixed annual income, regardless of the investment
performance of your asset. Because your tax deductions and income are based on the value of
the asset as of the day it was transferred to the trust, the CRAT is probably better suited to assets
you suspect will lose value in the years ahead.
Regardless of the economic winds, your income is guaranteed. So, if your asset doesn’t earn
enough to pay your annual income, the principal will be used to make up the difference. On the
other hand, if the markets turn bullish and your asset outperforms your expectations, the surplus
will be added to the principal.
With a CRAT, you will be paid an annual income equal to at least 5%, and no more than 50%, of
the asset’s fair market value, determined on the day it was transferred to your trust. So, if you
donated a stock portfolio valued at $250,000 on the day it was transferred to your Charitable
Remainder Trust, your annual income would be a minimum of $12,500. There’s an upper limit to
how much you can receive each year, but it isn’t as simply stated. It has to do with your lifespan
(as well as the life spans of any other beneficiaries) and other factors. Your estate planning
attorney will help you determine exactly how much your annual income from a CRAT may be
each year.
The chief drawback of the CRAT is also its strength; it protects the donor against swings in the
financial markets. In a stagnant or declining market, the donor comes out ahead. But in a strong
market experiencing investment growth, it’s the charity that will ultimately benefit the most.
That’s why donors who hold more bullish views on investing will prefer the Charitable Remainder
Unitrust.
The Charitable Remainder Unitrust (CRUT) offers a couple of advantages over the CRAT. First,
unlike the CRAT, you may make as many contributions as you like to your CRUT. And for the sake
of determining annual income, it is the asset’s current fair market value—not its value on the
date it was transferred to the trust—which is used in the calculations.
6. Charity Begins At Home4
As for its income opportunities, the CRUT allows the benefactor to ride the financial markets and
enjoy the investment performance of the trust assets. That means, of course, that in some years
you may receive less, other years more. When lean years keep you from receiving your full due,
a “make-up provision” can allow for additional income in future years to make up for the
shortfall.
The CRUT requires that the donor receive a minimum income of 5% of the asset’s current fair
market value, and not more than 50%. You can also opt to receive your chosen percentage or the
trust’s net income, whichever is less.
Clearly, donors who want income from their charitable contribution and who don’t mind riding
the winds of economic change will find plenty of appeal in the CRUT.
WHAT ABOUT YOUR HEIRS?
So far we've focused on the ample benefits that the Charitable Remainder Trust offers you. But
what about your heirs? After all, you’ve given away a piece of their legacy in order to gain income
and tax advantages for yourself today.
One frequently employed solution is the Irrevocable Life Insurance Trust. When used in concert
with the Charitable Remainder Trust, it provides your heirs with an income-tax-free legacy equal
to the full value of the asset you donate to charity. Here’s how it works.
After you establish your Irrevocable Life Insurance Trust, your trustee then purchases a life
insurance policy on your life with your heirs as beneficiaries. Usually, the death benefit of this
policy is equal to the value of the asset you’ve given away. The cost of the policy can be offset by
income generated by your Charitable Remainder Trust or the charitable income tax deduction
you receive. Upon your death, your heirs will receive an income-tax-free death benefit.
Why do it this way, rather than just owning the policy outright? Because the proceeds of a policy
owned in your name at your death will be included in the value of your estate for estate tax
purposes. Considering that estate taxes kick in at a 40% rate, life insurance policy could expose
your estate to a sizable tax bite. (For more information, see the Academy report, The Irrevocable
Life Insurance Trust.)
7. Charity Begins At Home 5
ABOUT THE ACADEMY
This report reflects the opinion of the American
Academy of Estate Planning Attorneys. It is based on
our understanding of national trends and
procedures, and is intended only as a simple
overview of the basic estate planning issues. We
recommend you do not base your own estate planning on the contents of this Academy Report
alone. Review your estate planning goals with a qualified estate planning attorney.
The Academy is a national organization dedicated to promoting excellence in estate planning by
providing its exclusive Membership of attorneys with up-to-date research on estate and tax
planning, educational materials, and other important resources to empower them to provide
superior estate planning services.
The Academy expects Members to have at least 36 hours of legal education each year specifically
in estate, tax, probate and/or elder law subjects. To ensure this goal is met, the Academy provides
over 40 hours of continuing legal education each year. The Academy has also been recognized as
a consumer legal source by Money Magazine, Consumer Reports Money Adviser and Suze Orman
in her book, 9 Steps to Financial Freedom.