[NOTE: The following is based on a true story.] Some of the numbers just didn’t make sense. It was that most wonderful time of the year for a non-profit organization – the closing of the June 30 fiscal year! Almost like Christmas in July, everyone was busy reviewing tally sheets and running various reports in an effort to provide comprehensive information about the gifts received over the previous 12 months. With outright gifts, of course, the process was fairly straightforward – whatever was received, for the most part, was counted with a few exceptions. With life income gifts, however, the process was a little more complicated, since the organization needs to report the total funding amount, the estimated liability, and the estimate of the charitable remainder.
I found a recipe for Cherry Surprise Cookies. The surprise is a nugget of chocolate inside the cookies. Like these delicious-sounding cookies, deferred gift annuities can come with a surprise. The surprise can be pleasant like chocolate or dreadful, as in losing lots of money.
A bipartisan group of ten Senators announced agreement to the “Infrastructure Investment and Jobs Act” late Sunday, August 1, 2021, and the Senate has agreed to proceed to consider the proposed legislation. The bill includes new federal investments for hard infrastructure, such as roads and bridges, broadband internet, transit, and electric utilities. A Senate vote on the bill could take place "in a matter of days," according to Senate Majority Leader Chuck Schumer. The Senate’s summer recess is scheduled to start August 9.
The charitable remainder unitrust (CRUT) comes in five flavors, each of which can be useful in certain donor situations. The donor’s goals should dictate which of the five will work best for them.
On May 28, the Biden Administration released a general explanation of its revenue proposals for Fiscal Year 2022. The so-called “Green Book” provides more detail on these proposals than had been available previously. Of especial interest to gift planners, under the heading “Treat transfers of appreciated property by gift or on death as realization events,” pages 62-64 discuss the Administration’s proposed changes to the taxation of capital gain when assets are transferred during life and at death. I reviewed some of these proposed changes regarding outright gifts and bequests of appreciated assets in a previous blog post, but until now there was no detail on how transfers to split-interest gifts would be treated.