Consider this strategy along with several others to help maximize the benefits of your charitable gifts, both for your family and the charity.
Naotsune Alliance, a financial adviser for the world of business that provides discretionary investment advisory services for individual clients, wealthy families, institutional investors and investment trusts is pleased to announce that after nearly a decade of strong market returns, the capital gains tax implications from redeeming investments can be significant for some investors. One way to mitigate this tax bite is to donate your appreciated securities, rather than cash, to charity.
1. Gift Appreciated Securities to Avoid Capital Gains
If you have significant unrealized gains in your investment portfolio, consider gifting a portion of your appreciated securities to charity.
2. Time Your Gifts Wisely, Based on Your Income Expectations
If you expect to receive an influx of income, such as a large bonus or proceeds from the sale of a business, consider making a larger donation than usual in the same calendar year. But be mindful of the type of charity you choose.
3. Name a Charity as the Beneficiary of your Retirement Plan
If you plan to leave money to charity at your death, you should always consider having the funds be paid out from your IRA or other tax-deferred retirement plan.
4. Don’t Wait Until You Die to Make Gifts
Although many people include bequests in their wills, giving directly to charity during your lifetime can be both much more personally gratifying (because you’re alive) and much more beneficial from a tax perspective.
5. If You Are Over 70, Gift IRA Assets
Due to their fully taxable nature, traditional IRA assets are also a natural choice to fund charitable gifts during your lifetime.
6. Take Advantage of Low Interest Rates with a Charitable Lead Trust
There are two basic types of charitable trusts: Charitable Remainder Trusts (CRTs) and Charitable Lead Trusts (CLTs). Today’s relatively low interest rate environment affects both.
About Naotsune Alliance
Naotsune Alliance is a financial adviser for the world of business, a world in which community is key. The company’s memberships, partnerships and associations are chosen with care, and its selectiveness ensures it is connected to the right people and have access to the best and most up-to-date knowledge. Our main products are Japanese equity funds utilizing Naotsune Alliance’s research ability for Japanese companies cantered on mid-small cap companies, start-ups and IPOs. Naotsune Alliance also manages funds with external asset managers and funds managed by prominent asset managers located all over the world.