How Complex Assets Can Fuel Clients’ Charitable Giving-Slide handout

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Pdf Summary

The document, presented by Corey Ziegler, Chief Legal Officer, focuses on how complex assets can be leveraged for charitable giving. It outlines several learning objectives, notably the tax advantages of donating appreciated assets to charity through various vehicles, and how to advise clients on gifts involving complex assets.<br /><br />The discussion covers different types of complex assets that can be converted into charitable dollars, such as privately held business interests (including C-Corp, S-Corp, LLC, and LP interests), real estate (residential, commercial, and undeveloped properties), and other alternative assets (like retirement plans, life insurance, cryptocurrency, and private equity). The document emphasizes the national landscape of complex asset donations, highlighting substantial average values of gifts like business interests and cryptocurrency.<br /><br />Key considerations for both donors and charities are addressed, including the timing of gifts, transfer costs, legal fees, obtaining qualified appraisals, and ensuring the charity’s capability to convert assets to cash. The document underscores income tax deductibility limitations based on the type of charity and asset, as well as the duration the asset was held.<br /><br />Specific case studies illustrate the nuances of donating business interests, real estate, retirement plans, life insurance, and cryptocurrency. These examples provide insight into potential deductions, tax implications, and logistical challenges such as dealing with "hot assets" or debt-related deductions. <br /><br />Moreover, the document encourages advisers to "think outside the box" when it comes to charitable giving, advocating for early planning before significant sales transactions and involving tax and legal experts in decision-making. This holistic approach aims to optimize both philanthropic impact and tax benefits for clients.<br /><br />Overall, the presentation encourages proactive strategic planning in charitable giving, especially when dealing with complex assets, to maximize benefits for both donors and recipient organizations.

Keywords

charitable giving

complex assets

tax advantages

appreciated assets

business interests

real estate

cryptocurrency

income tax deductions

strategic planning

legal considerations