Legacy Giving
News & Information

The following is intended as general information and does not represent legal or tax advice. The information presented is the view of the author and not necessarily the view of McLeod Health Foundation. Individual circumstances vary – please consult your legal and tax advisors about your specific situation.

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5 tax moves to make this COVID-19 affected June

though, such as Idaho, have different due dates for state taxes. For federal returns that means June, whose start today is around six weeks from the filing deadline, is essentially March as far as tax moves if you've yet to file your federal taxes. That's why the first of the five tax moves highlighted in this post reverts back to our happier — OK, not necessarily happier, but more predictable — pre-coronavirus tax days.

CGA rates set to decrease

The American Council on Gift Annuities (ACGA) announced that it will be reducing its suggested maximum annuity rates, effective July 1, 2020. The new rates will be based on a net investment return assumption of 2.75%, a decrease of 0.5% from the current 3.25% net investment return assumption. The ACGA anticipates that, in general, the suggested maximum payout rates will decrease 0.3% - 0.5% at most ages as a result. For example, the annuity for a $10,000 donation is expected to go down $30 to $50 per year.

Five Key Benefits of the CARES Act for Individuals and Businesses

By now you know that Congress has passed a $2 trillion relief bill to help keep individuals and businesses afloat during these difficult times. Here are five provisions of the CARES Act that may benefit you or your business.

Don't fall for these 4 common COVID-19 payment scams

The COVID-19 economic relief payment checks really are in the mail. That means a whole new slew of coronavirus scams also are showing up via phone calls, as well as in people's mail boxes, both electronic and real-life curbside ones. Andrea Avery, a Postal Inspector and National Public Information Office for the agency, tells us more. Here are four common coronavirus scams that Avery and the Postal Service are seeing.

Will vs. Trust: Know the Difference

Wills and trusts are common documents used in estate planning. While each can help in the distribution of assets at death, there are important differences between the two. While both a will and a revocable living trust enable you to direct the distribution of your assets and property to your beneficiaries at your death, there are several differences between these documents. Here are some important ones.

The Eight Most Pressing Questions About Estate Planning

Advisors are used to figuring out the most sophisticated and nuanced of solutions to custom-tailor each plan to fit the needs of each client. However, it’s sometimes the simpler, less technical questions that touch on the humane aspect of estate planning that need our attention. We asked Trusts & Estates’ esteemed board members what some of those most frequently asked questions are and their take on a concise, thorough response. Whether you’re a newly minted estate planning attorney or a seasoned professional, here’s some insight on the questions commonly plaguing clients.

Coronavirus Payments to start in three weeks

The coronavirus checks will soon be in the mail, or rather headed directly to your bank account. That's the official word from the Treasury Department and Internal Revenue Service. The agencies announced on Monday, March 30, that the economic impact payments authorized by the Coronavirus Aid, Relief and Economic Security (CARES) Act will begin going to eligible taxpayers in the next three weeks. Here are the agencies' answers to some other COVID-19 stimulus payment questions.

No RMD due April 1 (no fooling) or any time in 2020

The new law that's gotten a lot of attention for the pandemic related stimulus checks that should be going out soon also offers a break to seniors who must take required minimum distributions, or RMDs.  RMDs are waived for 2020 under the CARES Act. That means you can leave your money in your tax-deferred account this year or at least not take as much out as Uncle Sam demands. That should help as your market-battered nest egg looks to rebound. Here is some more information regarding this change.

New Charitable Giving Incentives in CARES Act

At the end of last week, President Donald Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The $2.2 trillion rescue package comes in response to the economic fallout from the coronavirus pandemic. The measure contains a number of provisions to encourage greater charitable giving including:

Five steps taxpayers can take now to protect against identity theft

All taxpayers should make sure they're doing everything they can to prevent a thief from stealing their identity. Tax-related ID theft occurs when someone uses a taxpayer's stolen personal information to file a tax return claiming a fraudulent refund. The thieves use personal information like a stolen Social Security number. The IRS and its partners are constantly working to combat these types of crimes, but they can't do it alone. Taxpayers play an important role when it comes to preventing identify theft. Here are some tips to help taxpayers protect themselves against identity theft. Taxpayers should:

Two tax deductions you can claim as late as April 15

You're working on your tax return and discover you owe Uncle Sam more than you expected. It happens. And in most cases, you're stuck with that larger Internal Revenue Service bill. After all, the 2019 tax year is long gone. It's too late to make those year-end moves that could have helped cut your tax bill. But wait! In a couple of instances, you still might be able to reduce last year's taxes with some tax saving moves that are allowed as late as the April 15 filing deadline.

Is it time to review your IRA estate planning strategies?

The Setting Every Community Up for Retirement Enhancement (SECURE) Act, which was passed in December 2019 as part of a larger federal spending package, included a provision that warrants special attention from those who own high-value IRAs. Specifically, the "stretch" IRA provision — which permitted nonspouse beneficiaries who inherited IRAs to spread distributions over their lifetimes — has been substantially restricted. IRA owners may want to revisit their estate planning strategies to help prevent their heirs from getting hit with higher-than-expected tax bills.

Ten avoidable tax filing errors

Millions of us file taxes every year. And millions of us, even those who get refunds, dread it. Why? We worry that we'll make a mistake. That's a legitimate concern. But sometimes, we filers have to bear some of the blame. We make things worse by making easily avoidable mistakes when we fill out our 1040s. Here are 10 common errors you can dodge by taking a little care when you file your tax return.

The Best Retirement Strategy

There is no perfect retirement income solution. The change from defined benefit (pension) plans of previous decades to the defined contribution options that are common today has left many people wondering how to invest their retirement nest eggs so they won’t run out of money. The sheer number of financial instruments and strategies leave many people feeling like deer in the headlights. Researchers at Stanford University have come up with a strategy that works for most of the people, most of the time. Stanford University examined 292 retirement portfolio strategies for middle-income earners with less than $1 million saved. This is the best one they found.

Tax Myths - True or False?

Over the last few years, several tax myths have surfaced that often get repeated on television, the internet, and at cocktail parties. But, is there any truth to them at all? Here are a few tax myths you might have heard about.

State Tax Changes as of January 1, 2020

When it comes to taxes, the goal every year is to pay less. While we're still working under the Tax Cuts and Jobs Act (TCJA) changes at the federal level, we still see some changes in 2020. Federal income taxes, however, aren't the only taxes that millions of us must deal with each year. Forty-three states impose some sort of tax on income. Many local jurisdictions collect their portions, too. Thirty-five states have major tax changes taking effect on January 1, 2020.

Estate Planning: Consider the Tax Basis of Gifted or Inherited Property

Tax basis can be important when deciding whether to make gifts now or transfer property at your death. This is because the tax basis of the person receiving the property depends on whether the transfer is by gift or at death. This, in turn, affects the amount of taxable gain subject to income tax when the person sells the property. What is tax basis?

Tax Extenders

Congress finally decorated its Christmas tree early this morning (December 17). The ornaments were myriad tax breaks. Or, in some cases, elimination of taxes. With Dec. 25 bearing down and special interest groups sending more requests to Capitol Hill than kiddos' letters to Santa, the House and Senate negotiators finally agreed on, among other things, what to do about those expired tax provisions popularly known as extenders. They OK'ed a handful of them and plan to tack them onto government fiscal year funding legislation that must become law by Friday, Dec. 20, to avert shutdown of federal offices.

For more information or a confidential discussion of your charitable options, please
email or call, Elizabeth Jones, at (843) 777-2694.

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. Donor stories and photographs are for purposes of illustration only. As with all tax and estate planning, please consult your attorney or estate specialist. You may also contact a member of the Professional Advisory Council. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. The content in this Legacy Giving section has been developed for McLeod Health Foundation and is owned by Future Focus. Please report any problems to section webmaster.