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NEWS FOR PROFESSIONAL ADVISORS

RECENT BLOGS

Three Important Factors in Donating S Corp Stock to Charity

A question many family businesses grapple with in their formative stages is whether to form an S Corporation, or limited liability company? For years, S Corporations were frequently preferred for small businesses that wanted the protection of a corporate structure versus a traditional partnership. In the 1990s, limited liability companies, or LLCs, rose in popularity because they offered both favorable tax treatment and corporation-like protections. In recent years, lower tax rates have contributed to the resurgence of traditional C Corporations as a viable structure for a business.

Five Pointers When Making Gifts of Life Insurance to Charities

“Incidents of ownership” are three powerful words in estate planning where life insurance is concerned. The phrase is a key component of Internal Revenue Code Section 2042, which provides for the inclusion in a taxpayer’s gross estate, for estate tax purposes, of the proceeds of insurance policies on the taxpayer’s life under two circumstances. First, if the proceeds are actually received by the estate, they are included. Second, proceeds are included in an estate when the money is received by named beneficiaries other than the estate if the taxpayer died possessing “incidents of ownership” in the policy.

Advisors' Fiduciary Obligations Can Get Personal

With charitable bequests on the rise, and the possibility that more clients will be subject to Federal estate taxes in the future, many attorneys, accountants, and financial advisors are reviewing the requirements of advising and administering taxable estates where one or more charitable organizations is a beneficiary.

Upcoming Legislative Developments

CFFAC intimately understands the issues facing our community and how grants from funds can be impactful. We do this through deep knowledge of our area’s nonprofits, due diligence to ensure that each charitable dollar helps as many people as possible, and an unwavering commitment to investing in our community for the long term. As we enter into an era of potential tax reform, we pledge to keep you informed of legislative developments that will require you and other advisors to navigate the important distinctions between Community Foundation Donor Advised Funds and Commercial Donor Advised Funds, as well as the differences between Donor Advised Funds and Private Foundations.

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