The gift of giving is a subject that is personal. How and who you decide to share your wealth with is a decision that only you can make.
On today’s Thrive For[e]ward podcast we are talking about two areas of giving. First is giving to those you love and want to share your wealth with. The second is giving to non-profit organizations that you want to support and those that you are passionate about their cause(s).
Giving to those we love …
When making the decision to give to those you love, it’s important consider what you want to give during your life span and what you plan to give after you pass. Some like to give to see their wealth transfer to those they care about and like to see it used in action and joy.
That said, when gifting at the end of the year a lot of times we look at gifting cash, but some want to give sericites or bonds or even assist in funding college or education.
TIP >> If you are a spend down situation, there is a five year look back period. Remember there is not a way hide assets.
Under the federal unified estate and gift tax (IRS 2020 limits), every individual can make an annual gift of up to $15,000 to any single recipient with no estate or gift tax consequence or filing requirement.
If you are not looking to gift cash, another option is to pass ownership of a security you own, but if you are doing this the recipient will receive what is called a step up in value, this happens after your passing. BUT if you give the gift while you are living, they do need to carry on your basis of what you bought it for. Sometimes when giving securities it is more favorable to give to 501C3 or organizations rather than to an individual.
Giving to 501c3 or non-profits …
Many of us are passionate and want to continue to support the organizations that are making a difference and aligning with our values. End of year gifting is a great way to do this, or you can include into your financial plan and work with your estate attorney to determine portions of your wealth going to the origination after your passion.
Regardless, when donating to a 501c3 or nonprofit you want to check out how much of your donation is going to the cause that you are donating to. Once site that is a great resource is www.charitynavigator.org.
There is nothing wrong with being strategic with giving the gifts you want to give. Think about the direction of how and what you give to non-profits. For instance, the gain of giving securities to non-profits they don’t have any tax liability to the growth.
Other options are donor advise funds, charitable trust, or different titling to remove your assets from your wealth into another capacity. This Is a complex planning situation so be sure to include your tax person, estate planning attorney and your financial planner. These three professionals can work closely together to look out for what is in your best interest.
As always we at Forethought Planning want to provide resources and education on topics related to your finances. Our Thrive For[e]ward platform allows us that opportunity to share with all of you!
So, if you have a topic you would like us to explore and share we want to hear from you. Please email us at [email protected] and in the meantime, we hope you continue to join us on this series and invite you to schedule an appointment to our complimentary 30 min Wealth Assessment session to learn more about how we incorporate these strategies and other’s to assist you through the financial planning process.
Securities offered through LPL Financial, a member of FINRA/SIPC. Advisory services offered through Advisors’ Pride, a SEC registered investment advisor. LPL Financial, Advisors’ Pride, Forethought Planning and the guests of Thrive For[e]ward podcast are separate and unaffiliated parties. Any of the parties listed above are not affiliated with Forethought Planning, Advisor’s Pride, or LPL Financial. The views expressed here are those of the participants, and not those of Forethought Planning, Advisor’s Pride, or LPL financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. LPL Financial and Forethought Planning do not offer legal services. Socially Responsible Investing (SRI) / Environmental Social Governance (ESG) investing has certain risks based on the fact that the criteria excludes securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the universe of investments available will be smaller.
Securities offered through LPL Financial, a member of FINRA/SIPC. Advisory services offered through Advisors’ Pride, a SEC registered investment advisor. LPL Financial, Advisors’ Pride, Forethought Planning and the guests of Thrive For[e]ward podcast are separate and unaffiliated parties. Any of the parties listed above are not affiliated with Forethought Planning, Advisor’s Pride, or LPL Financial. The views expressed here are those of the participants, and not those of Forethought Planning, Advisor’s Pride, or LPL financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. LPL Financial and Forethought Planning do not offer legal services.
Socially Responsible Investing (SRI) / Environmental Social Governance (ESG) investing has certain risks based on the fact that the criteria excludes securities of certain issues for non-financial reasons, and therefore, investors may forgo some market opportunities and the universe of investments available will be smaller.
