Many clients make generous charitable bequests. Learn about some giving strategies that can help make the most of their donation dollars.
Do you know how much your clients are currently contributing to charities or if they plan to do so? How are you helping them maximize those donations? Don’t miss an opportunity to add “hidden alpha” to your client’s portfolios. Below are a couple options to consider for charitable contributions.
Many retirees who give to charities also may need to withdraw funds from their Individual Retirement Accounts (IRAs) to make contributions. What if the contribution could be made without impacting their adjusted gross income (AGI)? This may be an option if retirees meet the following requirements:
Many clients hold assets that have greatly appreciated in value. While some might want to sell, they sometimes hold back due to the potential tax impact. Helping clients to gift appreciated assets—instead of cash—may allow them to avoid immediate capital gains taxes and receive a tax deduction, while benefiting the charity of their choice.
Gifting appreciated assets allows clients to:
An IRA can be a wonderful bequest to a beneficiary. Owners who would like to benefit a charitable cause after their passing may want to rethink which assets are directed to those charitable causes. An IRA may be a good asset option to pass to a charitable beneficiary because:
Some clients may find the strategies outlined above helpful and appreciate that you took the time to help them maximize their donation dollars. So, make a point to review charitable giving opportunities with your clients. Are they donating cash or appreciated assets? Can they itemize? Are they eligible to make a QCD? All these strategies can be used to maximize your clients’ tax savings and increase the dollars available to the organizations.
This material is provided for informational purposes only and should not be construed as investment, tax, or legal advice. Information is based on current laws, which are subject to change at any time. Clients should consult with their accounting or tax professionals for guidance regarding their specific financial situations.
This material is educational and intended for an audience with financial services knowledge.
Pacific Life, its distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor or attorney.
Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.
Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company (Newport Beach, CA) and an affiliate of Pacific Life & Annuity Company. Variable and fixed annuity products are available through licensed third parties.
No bank guarantee • Not a deposit • Not FDIC/NCUA insured • May lose value • Not insured by any federal government agency
For financial professional use only. Not for use with the public.