The material presented in this e-mail is general in nature and is not offered as legal or tax advice.
The impact of the tax bill will vary based on individual circumstances. You are urged to seek the advice
of your tax advisor, attorney, and/or financial planner to make certain a contemplated gift
fits well into your overall financial circumstances and planning.
The tax bill passed by the U.S. House and signed by President Obama contains a provision reinstating the IRA Direct Charitable Transfer for those 70 ½ and over. It is retroactive to 1/1/2010. Eligible donors may also elect during January 2011 to make such a transfer that will count for 2010. The bill also allows such direct charitable transfers any time in 2011 for that tax year.
The bill renews the federal estate tax for two years (through Dec. 31, 2012) at a 35 percent top rate with the first $5 million ($10 million for couples in many circumstances) of an estate exempt from tax.
In the last few days of 2010, the extension of the IRA Transfer for this year may especially benefit any eligible persons who have not taken all of their Minimum Required Distribution from an IRA or other retirement plan for 2010. The maximum total amount that can be transferred to charity in either 2010 and 2011 remains $100,000 per year. The extension will allow for advance planning for those wishing to set off any or all of their 2011 Minimum Required Distributions by utilizing the IRA Direct Transfer. Of course, 2010 Direct IRA Transfers will also now be allowed for the rest of 2010, as well as during January 2011.
The bill also extends the current income tax rates for two years, so there is not necessarily any tax rate advantage for donors to wait until 2011 to make an outright charitable gift by check or appreciated assets in 2010. For gifts by check to count for 2010, they must be postmarked no later than December 30, 2010, since December 31 is a legal holiday this year (official New Year’s Day) and no mail will be postmarked beyond December 30. For gifts of stock to count for 2010, the stock must be received in the UConn Foundation’s brokerage account no later than the end of the year.
For more information, please contact:
Hal C. Reed, JD, CFRE
Assistant Vice President for Planned Giving
The University of Connecticut Foundation, Inc.
2390 Alumni Drive, Unit 3206
Storrs, CT 06269-3206
(860) 486-6135
FAX (860) 486-1615
hreed@foundation.uconn.edu
Visit our Planned Giving site at legacy.uconn.edu.
