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PROFESSIONAL ADVISOR RESOURCES

The North Texas Community Foundation is always available to answer questions and meet with you personally to tell you more about our customized charitable solutions. We also offer many resources that may be helpful to you and your clients.

General Information

PA NEWS & ARTICLES

Ramsay Slugg, Managing Director & Wealth Strategist at the National Wealth Planning Strategies Group of U.S. Trust, spoke to local professional advisors, attorneys, financial planners and others on May 15th at the INSIGHTS for Professional Advisors event at The Fort Worth Club. The North Texas Community Foundation was excited to have Ramsay as our special guest and hope attendees found the information useful for themselves and their clients.

“Most people are familiar with the charitable activities of private foundations bearing names of the giants of U.S. business—the Rockefeller, MacArthur and Bill and Melinda Gates Foundations, to name just a few. These foundations still play a vital role in charitable activities around the world, but the wealthy are increasingly directing their charitable contributions to donor-advised funds. DAFs now significantly outnumber private foundations in the U.S., and the gap is widening.” Read more…

Some of the most controversial provisions of The Tax Cuts and Jobs Act of 2017 (the “Act”) relate to providing tax relief to small business entities. Some of the impactful changes affecting small businesses are as follows…

Since the Tax Relief Act of 2012, the federal estate tax exemption had been set at $5,000,000, as adjusted by the consumers price index, or $10,000,000 for a married couple. With inflation that amount had risen to $5,490,000 per person or almost $11,000,000 for a married couple in 2017. The new Act effectively doubles this exemption to $10,000,000 per person. In 2018 the inflation adjusted amount is expected to be slightly over $11,200,000 per person.

Yesterday after our blog was posted the IRS issued a new advisory (IR-2017-210) saying that prepayments of property taxes not yet assessed will not be deductible on your 2017 tax returns.

The Tax Cuts and Jobs Act of 2017 (the “Act”) was recently signed into law and with it significant changes in the taxes you may pay. We will be providing a few summaries of some of the more substantial of these changes as well as some thoughts on how to respond to those changes. While your CPA might also be providing a summary with respect to the Act, this article will focus on a limited number of individual income tax changes.

Every year at about this time, articles appear in various publications regarding year-end tax planning. These typically focus on reducing your tax burden by shifting income between tax years, increasing retirement plan contributions, harvesting investment losses and increasing charitable contributions.

Megan C. Sanders, J.D.

Megan C. Sanders joined Bourland, Wall & Wenzel as an associate in 2011. An honors graduate of Baylor University School of Law and Texas Christian University, her practice focuses primarily on estate planning, probate, charitable entity formation, charitable giving, and tax planning issues. She represents professionals, families, charitable entities and closely-held businesses in the firm’s areas of expertise to achieve their estate planning, wealth migration, asset protection, and transfer tax planning goals, among others.

Executive Summary

This article is directed towards donors and their advisors, to be a resource for various aspects of drafting a charitable gift agreement or donor advised fund agreement. Typically, a gift agreement memorializes the intention behind a single gift, or multiple gifts to one charity for a single purpose, while a donor advised fund can be used for multiple charitable purposes over time, for a donor who has a more fluid charitable intention. In either drafting scenario, we must begin with a thorough exploration of the donor’s true vision, as the donative intent is the very essence of the gift agreement. It is crucial that we consider various aspects of the donor’s gift and the donee’s use of the gift in crafting these types of agreements, working with the donee charity throughout the drafting process.

While most charities will have a form gift agreement, putting our donor’s unique stamp on the form agreement will enable their philanthropic intentions to have ultimate impact and longevity. This article begins with the basics of an enforceable charitable gift, discusses the impact of placing restrictions or conditions in the terms of the gift agreement, the enforceability of charitable pledges, and the vital elements of a gift agreement. As for donor advised fund agreements, the article discusses the basic operation and function of the donor advised fund, the manner in which they are created, and various drafting considerations for the agreement. Finally, sample language and drafting ideas are included for consideration and editing in your own gift agreement.

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