Recent developments in estate planning involve major shifts in how the IRS deals with taxable property, gifts, and generation skipping taxes. These new rulings have come down over the past couple of years, and with the current administration in place, it may be likely that we’ll see more changes in policy.
Understanding how taxes work will be a vital part of your estate planning process. You’ll need to be current on the new rulings, procedures, laws, and policies to protect your assets throughout your retirement years and for the beneficiaries of your estate when you pass on. Learn about the relationship between estate planning and charitable contributions, and why you need help from a qualified estate planning lawyer.
The IRS and Estate Planning
During the government’s FY 2015-2016, the IRS issued a number of rulings and regulations regarding tax provisions for estate transfers. These rulings involve allocations of transfer taxes on generation-skipping beneficiaries—if you leave something to your grandchildren, for example.
In addition, the service finalized the regulations for how to determine the basis of a taxable beneficiary in terms of interest in charitable remainder trusts. Estate tax charitable contributions have been something of a hot button issue in recent years, and court rulings have held up the idea that any events that occur after someone passes away can adversely affect the value of the estate, and that charitable deductions are based on the fair market value as of the date of the contribution.
Estate Planning and Charitable Contributions
Charitable contributions have long been used to reduce the value of an estate to protect its value and lower the tax liability for your descendants. It also allows you to line up your personal interests with your financial goals. You want to support causes that you care about, and protect your financial interests at the same time.
They can help to create an income stream for you during your retirement years as well as providing tax benefits for your heirs. However, with the new rules coming down the pike, you’ll need to be on top of the latest developments and rules to be sure you don’t fall on the wrong side of tax law and liability.
Making the Right Choices
Making the right choices in your charitable contributions can be a tricky thing and it depends largely on the size of your estate. There’s a range of different approaches you can take—if you have a small estate simply leave a portion of your assets to a charity of your choice in your will. If you have a larger estate you may want to diversify your means of donating.
Of course, you’ll need to make the right choices and this requires access to the best knowledge. An experienced local estate planning lawyer can be your best bet in gaining the information you require. For many years, the attorneys at Stano Law have been here to help you make the best choices to protect your assets and make sure that you and your heirs are properly cared for. Give us a call today and let’s sit down for a consultation!