In my previous post, I discussed how to properly evaluate the potential acquisition by a CRT of an illiquid position in a private equity investment, non-traded REIT, or limited partnership interest. Today, I will cover the other three areas I always advise clients to evaluate with illiquid gifts: self-dealing, valuation and liquidity.
I’m frequently asked whether a certain private equity investment, non-traded REIT, or limited partnership interest is a suitable investment for a charitable remainder trust (CRT). My response is a resounding, “Maybe!” With any investment other than cash, a security traded on an exchange, or an investment such as a mutual fund for which a daily net asset value (NAV) is available, there are five specific areas of concern I advise a client (or their advisor) to evaluate:
Read More »Illiquid or Unmarketable Assets as CRT Investments
Without a doubt, I plan to be the winner of the $1.5 Billion Powerball jackpot this Wednesday. I have $20 worth of tickets in hand and I just know the winner is there. I also now know that you can’t buy lottery tickets with a debit card, only cash. Sorry to the line of people behind me who had to wait while I ran to the ATM.
On Friday, Congress permanently allowed donors to make qualifying distributions to charities from their IRA while still alive.
For more than a decade donor-advised funds (DAFs) have been the fastest growing giving vehicle in the charitable giving landscape. So what draws donors to DAFs? When we peel back the layers, we find a whole host of reasons and benefits. In addition to being easy to establish, DAFs offer an immediate tax benefit, a tax free environment for appreciated assets to be sold, anonymity in giving, family involvement, and the ability to spread giving over many years.
Read More »DAF Stats: Baby Boomers Lead the Way but Millennials Gaining Ground on Gen X
It’s time.
As we all come off the four-day food bender that is Thanksgiving, we must face the inevitable; the Christmas season is here. For those who are like me, I adopt ostrich-like qualities from what now seems like Labor Day through Thanksgiving, ignoring the ever-expanding holiday shopping propaganda.Read More »Making our List and Checking it Twice
Just about any asset can be a good candidate for a donor-advised fund (DAF). Cash and publicly traded securities are by far the most common, but there are many other under-utilized ‘specialty” assets that work well for a contribution to a DAF. Such specialty assets include closely-held business interests, real estate, equipment, collectibles, and other similar property.
Often we hear advisors and families alike remark about how challenging it can be to start a conversation around giving. In reality, studies show that individuals want their advisors to discuss charitable giving. While charitable giving is a different conversation for advisors, Renaissance has developed some trigger questions to help you get the conversation started. Advisors play a critical role in starting these conversations and introducing solutions like Donor-Advised Funds (DAF) to charitable families. A DAF is the perfect tool for a family to support a tradition of giving and for an advisor to employ tax-smart strategies to enable the family to give more over time. Read More »Making Philanthropy a Family Affair
In Part 1 of this two-part series, we described several basic design features of a charitable lead trust (CLT). In Part 2 we will explore three common CLT formats.
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