Sensible Estate Tax Act introduced

Something old, something new, something borrowed, something blue?  Sound familiar?  But we're not talking weddings here.  We're talking federal estate and gift tax!

Well the "old" would be the exempt amount, $1M.  The "new" would be that the exempt amount would be indexed for inflation.  The something "borrowed" would be continued spousal portability, which is a creature of our current estate and gift tax as the result of TRA 2010.  The "blue" would be it's introduction by Representative who is a democrat from the state of Washington.

Read more about it here, and stay tuned!

ACGA publishes new rate schedule to take effect January 1, 2012

The new rates lower the suggested rates for both immediate and deferred annuities.  Seems as though CFMR rates like 1.4% were making it hard for many gift annuity scenarios to qualify as "charitable" under IRS requirements...so lowering the rates on payouts is expected to improve the liklihood a gift will qualify for a deduction...read more on the ACGA website.  It is probably advisable to contact any donors with illustrations based on the July 1, 2011 rates to advise them of the change taking place Janaury 1.  Maybe it will help them to decide to make the gift before December 31, 2011.

A possible Estate and Gift Tax Law Change before Thanksgiving?

Trusts & Estates website reported that the Supercommittee that is looking to generate revenue from all possible sources may be considering drastic estate and tax reform/changes (read "reversions") that could put an end to the $5M Exemption as soon as November 23, which could trigger some fast and furious gifting in the next 2 weeks...stay tuned, and read more about it by following the link here.  The article discusses the possible reversion to 2009's $3.5M exemption, or even 2001's $1M level!

Maine Public Broadcasing Highlights 2010 Endowment Performance

In a radio story this week also published on their website, Maine Public Broadcasting draws attention to the 2010 Investment Performance of Colby, Bates and Bowdoin Colleges' endowment funds.  The story mentions the additional $29M in gifts to Colby that,  combined with positive investment performance of more than 20%, contributed to their endowment breaking the $600M level, which is an extremely important point:  Endowments can (but don't necessarily) grow from market performance alone - but they are much more likely to grow - and grow at a higher rate - from additional planned gifts.

Read (or listen to) the story here.

How much would your organization like to see its endowment grow in the next 5 or 10 years?  Are you relying on the stock market for that growth, or finding the value of planned gifts to help increase the fund?

Wall Street Journal on Charitable Gift Annuities

I was so glad to see this suggestion for folks trying to find good fixed-income options in today's market.  Thanks to the Wall Street Journal for offering this article to readers who have charitable intent and are looking to diversify and/or increase their fixed income portfolios!  Read the article by clicking here.

If you have been having conversations with prospects about annuities, sharing this article and reminding them that July's 2.4% 7520 Rate is available through the end of September could be useful!