Nov. 2018 Roundup for Professional Advisors

Professional Advisors QCDs
Advisors may be able to maximize tax savings for their clients by advising them to consider making a qualified charitable distribution, commonly known as an IRA charitable rollover.

In our roundup for professional advisors, we explore reasons to update your estate plan, details of the Child Tax Credit, qualified charitable distributions and more. Read below to stay in-the-know on industry news.

Roundup for Advisors

Personal Planner: 10 Reasons to Update Your Estate Plan
You have completed a will and perhaps a revocable living trust. Your durable power of attorney for healthcare and a living will are in place. All of your records are safely in place and carefully organized. You now are finished with your estate planning… or are you? Will there be changes in your circumstances or your family that should lead to a review of your plan? Could some events cause you to need to revise or update the plan? Learn about 10 reasons to update your estate plan. 

Washington News: Increased Child Tax Credit for 2018
In IR-2018-217, the IRS reminded taxpayers of the benefit of the increased Child Tax Credit. The Tax Cuts and Jobs Act doubled the Child Tax Credit from $1,000 in 2017 to $2,000 in 2018. IRS Commissioner Chuck Rettig urged taxpayers to check their eligibility for the tax credit. He stated, “As we approach the 2019 tax-filing season, I want to remind taxpayers to take advantage of this valuable tax credit if they are eligible to claim it.”

Case of the Week: Barbara Banker’s LoBank Letter of Agreement
Barbara would like to make a large gift of bank stock to the local charity for a new youth center. But as a director herself, she knows that LoBank’s directors have approved signing a letter of agreement for the sale of all stock to MegaBank. Barbara meets with her CPA to discuss the gift. She explains, “The LoBank stock has gone way up in value, but I have heard that there may be problems with this gift now that there is a letter of agreement. Can I still make this gift?” 

Article of the Month: IRA Charitable Solutions – Part I
Advisors may be able to maximize tax savings for their clients by advising them to consider making a qualified charitable distribution (QCD), commonly known as an IRA charitable rollover. Advisors armed with the knowledge of the tax benefits of an IRA charitable rollover can present their clients with a plan that maximizes their federal income and estate tax savings by using their IRA to make charitable gifts while fulfilling the clients’ philanthropic goals.

 

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