The new year is a wonderful chance for recalibrating and starting anew. Over the next few months, we turn our attention to the opportunities and the challenges that 2023 may bring.
Even if you are not inclined towards making New Year’s resolutions, this is a great time to begin planning your charitable giving for the coming year. There are many opportunities to shape your charitable gifts to fit your unique circumstances and to make sure you maximize the financial advantages and tax savings. Some gift plans require careful consideration and may entail consultation with your family and advisors, all of which can take time.
For example, a gift of appreciated securities can provide double tax savings by reducing your income tax and avoiding capital gains taxes. However, timing and planning are critical when arranging your transfer because you want to be certain you give at the peak market value.
When you are over age 70½, making a charitable contribution through a qualified charitable distribution from your IRA avoids income taxes and, depending upon your unique circumstances, can help meet your required minimum distributions without taxes. You’ll need time to work with your advisors and your IRA administrator to complete your qualified charitable distribution contribution.
The new year is also an ideal time to review and update your estate plans. When you create or review your plans, you have an opportunity to consider gifts to the community as well as to your family and friends. Take a moment to think about St. Mark's School and other organizations that have been important to you during your lifetime, and what kind of legacy you might provide for them.