Strategy for gifting from Estate while living
“Mary” has an estimated net worth of over 25 million. She wants to give large gifts to charities she cares about. Now a widow, her natural thought was she would give to them upon her passing. We discussed with her advisors the small amount of her estate she has in IRAs…around $750,000.
Capitalizing on the uniqueness of the 100% AGI deduction through the Cares Act she took the $750,000 distribution out of her IRA. The $750,000 will be income in 2020. She already receives about $250,000 in dividends and interest income. She gave the full 1 million to her giving fund, which took her AGI (and taxes) to zero.
She is receiving the joy of giving now and engaging her entire family: children and grandchildren in generosity.
A big win for her heirs is reducing the estate by 1 million!
Another estate planning side benefit is the inherited money is no longer forced to be taken as a distribution by the heirs since the IRA has been drained.
She is receiving the joy of being generous and involving and engaging her family in the fulfillment and legacy of giving.
She specifically wants to give several 100k gifts to those ministries she cares about. Those will be game changing amounts for the ministries & wonderful testimonies of generosity to her grandchildren.