Planned Giving News and Information
April, 2014
The following is intended as general information and does not represent legal or tax advice. The information presented is the view of the author. Individual circumstances vary - please consult your legal and tax advisors about your specific situation. To return to the general planned giving pages, please close this browser window. This News and Information section has been compiled by Future Focus.

The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.

Franklin D. Roosevelt

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Taxpayers Should Proceed with Caution in Light of IRA Charitable Rollover Provision Having Expired
The IRA charitable rollover provision brought about by the Pension Protection Act of 2006, contained in IRC § 408(d)(8), provides an annual exclusion from gross income up to $100,000 for “qualified charitable distributions” from an IRA, thereby removing the multitude of potential negative tax drawbacks traditionally associated with funding charitable contributions with IRA withdrawals, to the extent of $100,000 per year. Although the IRA charitable rollover provision was enacted as a temporary charitable giving measure, originally set to expire on December 31, 2007, each time it has been set to expire, Congress has extended the provision, although it has never been made permanent.

In recent years, however, the provision has been extended retroactively after it had already expired, leaving taxpayers and charities alike in the dark during the course of the taxable year as to whether the IRA charitable rollover provision would be ultimately available for that year. Read more.

Beware of Fake IRS Emails and Phone Calls
Tax scams that use email and phone calls that appear to come from the IRS are common these days. These scams often use the IRS name and logo or fake websites that look real. Read more.

Trust Your Heirs Not to Squander Your Estate
"I want to give my kids just enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing." (Warren Buffett)
Buffett isn't alone in his concern about the impact of wealth on kids. Nearly 60 percent of parents believe their children are not well prepared to handle a financial inheritance. Experts say that much of family wealth is lost when it’s passed from the first to the second generation, and it’s nearly all wiped away by the third generation. Read more.

ed notes – A charitable trust can provide annual income for you and/or your children’s lives or for a term of years instead of a lump sum. It also provides a significant gift to charity and a charitable tax deduction for you when the trust is established. It is a way of giving a gift twice. Charitable trusts are a powerful and flexible estate planning tool. Talk with your development officer for more information.

Beware of Telephone and Email Scams
Keep your personal information in your wallet, not someone else's. By far, the most common way of separating seniors from their money is through the telephone, in cons ranging from the grandparent scam to the Jamaican Lottery scheme.
The grandparent scam started showing up in the area a few years ago, and a number of local residents have fallen victim. It targets older people, making them think a grandchild has gotten in trouble, often in another country. The con artist asks for money and tells the victim, "Please don't tell mom or dad; they'll kill me if they find out." Read more.

Three Timely Tips about Taxes and the Health Care Law
The health care law has provisions that may affect your personal income taxes. How the law may affect you may depend on your employment status, whether you participate in a tax favored health plan and your age. Here are three tips about how the law may affect you. Read more.

IRS Tips about Taxable and Nontaxable Income
Are you looking for a hard and fast rule about what income is taxable and what income is not taxable? The fact is that all income is taxable unless the law specifically excludes it.
Taxable income includes money you receive, such as wages and tips. It can also include noncash income from property or services. For example, both parties in a barter exchange must include the fair market value of goods or services received as income on their tax return. Some types of income are not taxable except under certain conditions. Read more.


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Please note, individual financial circumstances will vary. The information on this site is meant as general information and does not represent legal or tax advice. The information presented is the view of the author. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. This News and Information section has been compiled by Future Focus. Please report any problems to webmaster.