By making a planned gift, you can make a significant gift to Harvard to address some of the world's most pressing issues through cutting-edge research and the education of tomorrow's leaders—and gain financial and tax benefits for you and your family.
There are several types of gifts that first pay income to you and your family and then help Harvard. These also can enable you to dispose of illiquid assets in exchange for income and tax benefits. The lead trust is a gift arrangement that can help you transfer wealth to the next generation in a tax-efficient manner.
- Tax-Free IRA Rollover Permanently Extended
- Giving Appreciated Securities is Now More Advantageous
- Increased Gift and Estate Tax Exemption
- Opportune Time to Establish a Lead Trust
- The Harvard Manual on Tax Aspects of Charitable Giving
The IRA charitable rollover provision of the Trade Facilitation and Trade Enforcement Act of 2015, passed by Congress on December 18, revives the opportunity for qualified donors to make outright gifts of up to $100,000 to Harvard from their IRA. Such transfers avoid tax on the distribution to Harvard and count toward the donor's required minimum distribution (RMD). This is a permanent change, so donors may take advantage at any time in the coming years.
A gift to Harvard of appreciated stock held for more than one year may provide you with significant benefits, including:
- An income tax deduction for the fair market value of stock (top federal rate 39.6%)
- The elimination of capital gains taxes due if the stock were sold instead (top federal rate 23.8%)
The Federal gift and estate tax exemption has increased to $5.34 million (per individual) and $10.68 million (per married couple). In addition, each individual has a $5.34 million generation-skipping tax exemption.
Current low interest rates create an ideal environment to establish a charitable lead trust for financial and estate planning. Read more on charitable lead trusts.
The ninth edition of The Harvard Manual on Tax Aspects of Charitable Giving, written by Carolyn Osteen and Martin Hall of Ropes & Gray, LLP is available. Order your copy today.