[WSBAPT] large gifts of appreciated stock to charities in estate planning

[Susan Donahue]

Hello everyone,

 

I have a client who gives large gifts of appreciated stock to charities each
year.  I'm not certain the effect these gifts will have on her gross
estate/taxable estate at her death.  Are they treated the same as $15,000
gifts to individual persons which, if the proper gift tax form is filed each
year, can be deducted from the gross estate at death?  I'm trying to figure
out the best estate plan for her, but I'm not familiar with the effect of
gifting appreciated stock to charities annually, as she does.  Any thoughts
would be appreciated.

 

Her estate is over the $2.193 million exclusion amount, but I'm not sure by
how much.  I am just beginning to work on this.  If it is not too much over,
she can have her estate just pay the 10%estate tax on the amount over $2.193
million if her estate is worth less than $3.193 million, but the tax could
be a lot more than the expense of creating an irrevocable trust.  I think
the purpose for her to have a trust would be to shelter her estate from
taxes.  But how do the annual charitable gifts factor into this?  I'm
thinking an irrevocable trust of a certain amount of her present estate
would keep her taxable estate at her death under the exclusion amount.  

 

Any thoughts?  All are appreciated.

 

Susan

 

Susan Donahue

Law Office of Susan Donahue

125 West 2nd Avenue, Suite "B"

P.O. Box 81

Twisp, WA 98856

(509) 996-5944 (phone)

(509) 362-9692 (fax)

sdonahue at sdonahuelaw.com

www.sdonahuelaw.com <http://www.sdonahuelaw.com> 

 

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