20111114-NEWS--34-NAT-CCI-CL_--
11/9/2011
1:17 PM
Page 1
ESTATE PLANNING
S-18 NOVEMBER 14 - 20, 2011
Advertisement
CHARITABLE GIVING Help us connect people to the wonders of the universe
BETHEFUTURE To learn more about estate planning and life income gifts to the Museum, contact Sheryl Hoffman, Director of Major & Planned Gifts at (216) 231-4600, ext. 3310 or shoffman@cmnh.org www.cmnh.org/site/GiftGuide.aspx
Maximize the impact of giving through retirement plans of your retirement plan account. Charitable gifts of retirement ne of the easiest and plan assets at the participant’s most “tax-wise” ways to death avoid both income and make a gift to estate tax to heirs. When University Hosa participant makes a pitals, or another charity, retirement plan gift, the is by using your retirement charity receives the gift plan assets. In spite of the directly from the qualieconomic downturn, fied plan or IRA trustee Americans are building without going through large retirement plan balthe probate process. This ances, mainly through alleviates the delays and the use of employer-spon- PATRICIA FRIES costs associated with prosored 401(k) plans. bate, allowing the charity Almost all retirement plans to receive the gift more quickly have yet to be taxed, and considand cost-efficiently than if it had erable taxes will result when been made from an estate. retirement plan assets are used or distributed directly to heirs. HowDIRECT IRA ROLLOVERS ever, if these retirement plans are TO CHARITY given to a qualified charitable organization, they are received in Congress has reauthorized legfull, with no tax due, resulting in islation that allows you to make a more significant gift to charity. lifetime charitable gifts from your IRA accounts during 2011 without incurring federal income tax RETIREMENT PLAN on the withdrawal. The IRA charDESIGNATION TO CHARITY itable rollover provides you with You can leave your legacy by an excellent opportunity to make naming University Hospitals, or a gift during your lifetime from another charity, as a beneficiary an asset that would be subject to
By PATRICIA FRIES
O POWER OF ATTORNEY? YES. YOUR TYPICAL LAWYERS? NO. Because we’re not what you think of when you think about lawyers. You’ll want us to represent you because we’re not only trust and estate experts but we’re also approachable. We like to say, we’re “likable lawyers.” Imagine that.
JAMES A. GOLDSMITH
jgoldsmith@ulmer.com 216.583.7114
Cleveland
Chicago
Cincinnati
Columbus
ulmer.com
multiple levels of taxation if it remained in your taxable estate. IRA CHARITABLE ROLLOVER REQUIREMENTS ■ You must be age 70½ or older at the time of gift ■ Transfers must be made directly by an IRA administrator to the charity ■ Gifts must be outright IRA CHARITABLE ROLLOVER BENEFITS ■ Counts toward your required minimum distribution ■ Excluded from your gross income as a tax-free rollover ■ Gifts up to $100,000 The extension of the IRA charitable rollover will expire on Dec. 31. Act now to take advantage of this limited charitable planning opportunity. ■
Patricia Fries, Esq., MBA, is director of gift planning for University Hospitals. Contact her at (216) 844-0430.
Not all charitable gifts created equal deferred gifts that involve a direct transfer of assets. Examples he words “charitable include charitable gift annuities, giving” often evoke charitable remainder thoughts of tax annuity trusts, charitable deductions, but remainder unitrusts and it’s not always that simple retained life estates. The with deferred giving. common thread among Some deferred gifts are these gifts is that an asset revocable, meaning you is irrevocably transferred can revoke the gift at any to a charitable organizatime, while others are tion, often making the irrevocable, meaning per- JAMES HICKEY transaction eligible for manent. When considering an immediate income a deferred gift, it’s important to tax deduction. In many cases, understand that some gifts will these gift options also provide provide an immediate income lifetime payments to the donor tax deduction, while others will and other beneficiaries, giving provide tax benefit to your estate. you a two-fold benefit.
that allows you to change your mind at a later date. There are several revocable gift options available including will bequests, estate notes, life insurance beneficiary designations, pay on death/transfer on death assets, and more. The revocability of these charitable gifts negates the opportunity for an immediate income tax charitable deduction. However, deductions are usually available to the donor’s estate as the gifts mature.
■ TAX BENEFITS NOW
■ TAX BENEFITS LATER
If a positive tax benefit on your current year taxes is your goal, consider irrevocable
If you are uncomfortable with letting go of an asset now, you may appreciate a revocable gift
James R. Hickey, CFRE, CAP, is gift planning director for Ohio Presbyterian Retirement Services Foundation, serving Breckenridge Village. Contact him at (440) 942-4342 ext. 1506.
By JAMES R. HICKEY
T
Crain’s Cleveland Business Custom Publishing
Most importantly, talk to your tax professional and charitable gift adviser to make sure your gift meets your goals. ■