What Are Your Client’s Financial Goals?
Assets and Taxes
Most large gifts present the opportunity for significant tax deductions. Some people choose to give during high-income years to defray their taxes with deductions. Your client may wish to donate appreciated securities or real estate to avoid taxes on the sale of these assets. And, charitable bequests can play a role in estate planning for their heirs. As their professional advisor, you can assess the financial and tax implications of giving the following kinds of assets:
- Retirement savings (IRAs, Roth IRAs and other funds)
- Appreciated securities
- Closely-held stock and business assets
- Real estate
- Life insurance
- Art and collectibles
- Other asset
Major life events often drive changes to an estate plan and prompt charitable gifts. Which of the following transitions might be relevant?
- Selling a business
- Change in marital status for your client or their heirs
- Retirement or estate planning
- Receiving an inheritance
- Birth or coming of age of children or grandchildren
- Death of a loved one
Maybe your client would like to start giving now, so they can get involved or potentially see the results of their gift. Or perhaps your client would like to give through their estate. Most philanthropists do a combination of these. What is your client's timing preference?
- Give all gifts during lifetime
- Gift some lifetime gifts; some after death
- Give all gifts after death
Some people choose to give in a way that provides them—or a loved one—a stream of income for life. As their professional advisor, you can help select a giving vehicle that suits your client's time horizons, tolerance of risk, and income requirements. What kind of income would your client like their estate to provide?
- Predictable lifetime income for your client and their spouse
- Predictable lifetime income for your client or their spouse
- Maximum lifetime income for your client and their spouse
- Maximum lifetime income for your client or their spouse
- Provide income to a charity during their lifetime