Planning For Good Bloghttp://www.planningforgood.net/planning-for-good-blog/en-US2012-02-17T09:43:47ZSquarespace Site Server v5.11.81 (http://www.squarespace.com/)Sensible Estate Tax Act introducedhttp://www.planningforgood.net/planning-for-good-blog/2011/11/30/sensible-estate-tax-act-introduced.htmlPeter Lindquist2011-11-30T19:05:12ZSomething 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, 2012http://www.planningforgood.net/planning-for-good-blog/2011/11/20/acga-publishes-new-rate-schedule-to-take-effect-january-1-20.htmlPeter Lindquist2011-11-20T22:16:51ZThe 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?http://www.planningforgood.net/planning-for-good-blog/2011/11/11/a-possible-estate-and-gift-tax-law-change-before-thanksgivin.htmlPeter Lindquist2011-11-11T20:07:03ZTrusts & 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 Performancehttp://www.planningforgood.net/planning-for-good-blog/2011/10/5/maine-public-broadcasing-highlights-2010-endowment-performan.htmlPeter Lindquist2011-10-05T16:39:39ZIn 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 Annuitieshttp://www.planningforgood.net/planning-for-good-blog/2011/9/22/wall-street-journal-on-charitable-gift-annuities.htmlPeter Lindquist2011-09-22T18:54:06ZI 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!

]]>CFMR/7520 Rate for October, 2011: 1.4%http://www.planningforgood.net/planning-for-good-blog/2011/9/20/cfmr7520-rate-for-october-2011-14.htmlPeter Lindquist2011-09-20T16:28:17ZYes, folks, that's not a typo: 1.4% is the rate just sent by a colleague...this is the lowest rate in the history of the rate as it applies to charitable gifts, specifically, the calculation of a remainder's value in a charitable remainder trust, a remainder following a life estate and the value of a deduction for a charitable gift annuity. What does this mean? It means that the most gift tax savings is available when utilizing charitable lead trusts, and the least income tax savings is available for CRT's and CGA's and Remainders following Life Estates. In any given month, the IRS allows donors to use that month's rate, or either of the prior two months' rates. September was 2.0% and August 2.2%. July's 2.4% rate is looking good for anyone who can close a gift by the end of September!

]]>And some more thoughts on that election for 2010 estates...http://www.planningforgood.net/planning-for-good-blog/2011/9/12/and-some-more-thoughts-on-that-election-for-2010-estates.htmlPeter Lindquist2011-09-12T19:47:35ZA great piece in the 9/11/11 New York Times on the topic...and helping to demonstrate some of the complexities involved in trying to allocate basis adjustments for those estates that opt out of having an estate tax apply to a 2010 estate...read the article here.

We will continue to stress that the assets that didn't receive "stepped up" basis treatment or a "modification" in their carryover sufficient to avoid significant capital gains on sale by an heir be considered to fund charitable gifts. A good idea to keep in mind when talking with donors who were heirs of estates in 2010.

]]>Guidance for 2010 Estates...and a reminderhttp://www.planningforgood.net/planning-for-good-blog/2011/9/10/guidance-for-2010-estatesand-a-reminder.htmlPeter Lindquist2011-09-10T13:07:45ZThe American College of Trust & Estates Counsel published a very informative article this week...highlighting the election executors of 2010 estates can make in light of the 2010 Tax Reform Act reinstituting the estate tax, but providing an "opt out" for those who would choose instead carryover and "modified carryover" basis treatment. Read the article here.

I suggest that those who inherit assets from a 2010 estate whose executors have chosen to "opt out" and have either no step-up in basis or only a modified carryover basis in the assets they've inherited consider that those assets may be the best choice for charitable gifting to avoid the capital gains tax that may be imbedded in them. Just like long-term capital gains or "IRD" assets (generally, retirement plana assets) donors will tend to want to take advantage of tax efficiency in making gifts. Gift officers should consider asking questions about assets inherited in 2010 in appropriate circumstances, providing valuable information to donors who may not yet be aware of the impact of this recent legislation.

]]>Back to....http://www.planningforgood.net/planning-for-good-blog/2011/9/6/back-to.htmlPeter Lindquist2011-09-06T16:40:29Zwork! Well, we've been working all summer, but we haven't been writing about it! So, September is the beginning of a very busy fall of working across disciplines to help bring organizations and passionate supporters closer together to create gifts that build sustainable endowments. And with what the market is doing to many endowments in 2011, they need all the help they can get from additional gifts!

I've been asked to present on Charitable Gift Planning in 2011 and beyond to the account executives at Key Bank in Portland next week. It's really nice to know that a financial institution wants to be sure it has the best and most helpful information to aid their clients in sound and thoughtful planning, and I am honored to be asked to share my ideas and knowledge with them.

We've also got meetings with many of our clients who are gearing up for conversations with their donors about annual campaigns, year-end gifting and capital campaign planning. We're looking forward to meetings with staff and/or board members at Safe Passage, the Portland Symphony Orchestra, Animal Refuge League of Greater Portland, Family Violence Project in Augusta and the Iris Network.

We're also putting the last-minute touches on our September/October Workshop (Augusta and Portland, respectively) on Engaging Board Members and looking forward to sharing our ideas and our participants' about how to involve this key volunteer group for successful planned giving efforts. FMI, go to the "2011 Workshops" section of this site.

What are you doing to help build your endowment? Not relying on the stock market, I trust.

]]>US Trust report cited as showing high-net-worth clients surveyed more inclined to leave wealth to charity than to childrenhttp://www.planningforgood.net/planning-for-good-blog/2011/7/18/us-trust-report-cited-as-showing-high-net-worth-clients-surv.htmlPeter Lindquist2011-07-18T16:53:26ZI haven't read the report yet, but this blog entry got my attention. The writer indicated that those surveyed were those with at least $3M investe assets. Read about it here. It's more than just "tough love". It's understanding their children's needs to find their own way, and leaving a legacy to benefit society.

]]>