What Beats A Charitable Bequest Under The New Tax Law?

 

The reason charitable trusts and gift annuities make more sense now than before the new tax law is that by increasing the standard deduction, the new law dramatically cuts the number of taxpayers who will benefit from itemizing deductions, including deductions for charitable donations. Still, the new law keeps the charitable deduction in place for itemizers. And it eliminates a pesky rule — the Pease provision — that limited deductions for high income taxpayers. Now by making a big one-time gift upfront to a CRT or a CGA (you transfer assets, ideally appreciated stock, to the charity), you’ll be able to snag the deduction.

What Beats A Charitable Bequest Under The New Tax Law?

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