In our roundup for professional advisors, we explore double charitable trust-unitrusts, joint tenancy with right of survivorship and “blended gifts” for donors. Read below to stay in-the-know on industry news.
Roundup for Advisors
Case of the Week: Lead to Remainder Double Charitable Trust
When successful businessman George Green wanted to fund the Linda Green Center in his wife’s name and provide a lifetime income for his children, without paying an estate tax, his attorney suggested a double charitable trust-unitrust. This investment strategy allowed George to transfer one of his properties into a charitable lead trust, providing a $200,000 gift for the Linda Green Center over 10 years. After that time, the property could be given to a two-life remainder trust for his children.
Personal Planner: Married Couples and Property
For first marriages, joint tenancy with right of survivorship is a very convenient way to own a home, bank account, stocks or mutual funds. However, couples should understand that there are some potential risks in holding property as joint tenants with right of survivorship. If the couple is planning to fund trusts or the estate increases to a level that it is important to create a special tax-saving trust called the bypass trust, then joint tenancy can conflict with the will or living trust provisions. Joint tenancy may also disinherit a beneficiary under the will.
Article of the Month: Blended Gifts – Part 5
The idea of asking donors to make a “blended gift” is an emerging trend in the world of philanthropy. A blended gift is the combination of a current gift, or a commitment to make a series of current gifts, together with a planned gift, such as a bequest, charitable trust or charitable gift annuity. Part 5 of this series focuses on two types of blended gifts – a gift of a charitable gift annuity (CGA) income interest back to charity combined with a charitable bequest and a gift of a charitable remainder unitrust (CRUT) income interest together with a charitable bequest.
Washington News: Tax Relief for Hurricane Victims
In a series of letters this month, the IRS announced three types of tax relief for victims of Hurricane Irma who are from Florida, Puerto Rico or the U.S. Virgin Islands. Similar to the support provided to families impacted by Hurricane Harvey, the government is extending filing deadlines and permitting hardship loans for those in the federally-designated disaster areas.