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.
- Giving Appreciated Securities is Now More Advantageous
- Tax-Free IRA Rollover Extended until December 31, 2013
- Opportune Time to Establish a Lead Trust
- New Edition of The Harvard Manual on Tax Aspects of Charitable Giving
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%)
You can make a 2013 qualified charitable rollover until December 31, 2013. To benefit from this gift opportunity, the following qualifications must be met:
- You must be age 70 ½ or older at the time of transfer.
- The maximum amount you may transfer is $100,000 per year.
- The gift must be outright. Gifts to donor advised funds or to life income vehicles do not qualify.
- The gift must be transferred directly from the IRA account by the IRA administrator to Harvard.
The American Taxpayer Relief Act of 2012 permanently extended the $5.25 million (per individual), $10.50 million (per couple) gift and estate tax exemption. In addition, each individual has a $5.25 million generation-skipping tax exemption. These exemptions, coupled with current low interest rates create an ideal environment to establish a charitable lead trust for financial and estate planning. Going forward, the exemptions are indexed annually for inflation. Read more on charitable lead trusts.
We are pleased to announce that 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.