Making the Most of Our Gifts
Have you worked through a planning process to determine how much will be enough to provide for your needs in future years? Are you fortunate enough to have “more than enough?”
Some make the case that since the future is unknown, assets should only be distributed at death. Others suggest that if you have more than enough now, you could transfer assets to family members or your favorite ministries and enjoy seeing them benefit from your generosity while you are living.
If you find yourself ready and willing to give now, what assets should you give? In practical terms, certain assets may provide greater benefit than others.
Consider assets that have appreciated in value. If they are gifted to family during your lifetime, they retain your original cost basis and will be subject to capital gains tax on appreciation when sold. However, highly appreciated assets transferred to charity eliminate the capital gains tax. The result can be an increase of 15 – 25% of the asset value as a charitable gift compared when to the same value to a personal beneficiary.
May We Help You?
There are rules and may be limitations regarding charitable gifts of appreciated property. But when properly applied, generosity strategies can have a positive impact on your current gifts as well as the final distribution of your estate. To help you explore your giving options, we have prepared a special Guide to Gifts of Appreciated Property.
