Taxes and Stock Market are Considerations in Charitable Giving

Taxes are expected to go up regardless of the November election’s result as every level of government, nationally, statewide, and locally, faces severe budget deficits. 

Speculation is that in addition to increased tax rates at all income levels, changes to the estate tax, including to the lifetime gift exemption, and a stepped-up basis of estates, and “zeroed out” grantor retained annuity trusts (GRATS). Perhaps other changes may be made as well. With just five more months left in this year, the time to incorporate planning that considers probable tax increases and a reduction of tax-advantaged instruments is now.

The incredible resiliency of the stock market is also worth thinking about when planning a charitable gift.

Many stock holdings have returned to or exceeded their high values at the start of this year. The high value makes them attractive assets to use to fund split-interest gifts such as charitable trusts, charitable gift annuities, and other planned giving instruments. Should charitable giving become less tax-advantaged in future years, taking advantage of the high valuations in many equities this year will be a smart move.

Accountants have told me that 99% of tax change talk from Washington never happens, but we know that our government will continue to print and borrow money to address our current crisis. We will all need to address this deficit and debt over the next many years.

Changes are inevitable, so I strongly recommend talking with your legal and financial advisors to explore ways to achieve your personal financial and estate goals and, to the extent possible, plan for the challenges ahead.

The Community Foundation of Western Nevada is your partner in the philanthropic aspect of both your current financial plans as well as your estate planning. Please give me a call for a confidential conversation. Together we will do our best to navigate these difficult times. We are proud to be a member of your team.

Please give me a call at 775-333-5499 if you would like to meet and discuss your concerns and ideas.

Chris Askin, President, and CEO

PS – The Community Foundation office is open. We welcome visitors and prospective donors as we follow all appropriate COVID-10 safety measures.