Charitable Giving and Gifting

Subtopic: Meet Jason Beckley Air Date: August 28th, 2020

We Are Talking Money Live starts off talking to Jason Beckley who is an advisor at OmniStar Financial Group.  The show then goes into the main topic of Charitable Giving and Gifting.


There’s a lot of focus on legacy when creating a financial plan. Many clients focus on how best to leave assets to their children or favorite charities. However one key piece to a comprehensive plan may be gifting while alive.

  1. Basics of Gifting
    • Annual exclusion $15k – Form 709 in excess
      • There are certain transfers that are NOT subject to gift tax – transfers to political organizations being one of those.
      • Certain exempt organizations – 501c4 (non-profit for social welfare)
      • Tuition paid directly to higher education
    • What if you don’t want the gift? Certain rules must be followed – refusal in writing, no acceptance of interest, irrevocable.
    • Determining the value of a gift for gift tax purposes: fair market value at the date of the gift
  2. Appreciated stock – stepped up basis –gifting provides a way to get assets out of one’s estate to avoid estate tax at death $11.58 mill (individual) and $23.16 mill (married couple)
  3. Charitable gifting via RMD
    • The qualified charitable distribution (QCD) age is still set at 70 ½. This allows a tax planning opportunity during this 1 ½ year period. You may be able to reduce the amount you are required to take in RMD starting at age 72 if you donate to a charity between 70 ½ and 72.
  4. Gifting via Trusts
    • Charitable Remainder Trusts CRUT:
      • CRUT – charitable remainder unitrust – this trust allows a beneficiary income for a set/specific amount of time. The income is based on a percentage of the trust assets. At that stated time, the trust is donated to a charity. An important goal of the trust is to reduce taxes. You move highly appreciated assets into a CRT (can be stock, real estate) and you pay no capital gains tax when that asset is sold.
        • Irrevocable
        • Tax-exempt (the named beneficiary will still pay income tax on the income received)

Wine Wednesday: Sangiovese

The king of the Tuscan wines. Grown predominantly in Italy. There’s less that 2,000 acres in the US.

Very high tannins and acidity. Medium bodied. I would call it a more brownish tinted red. Coppery in color.

It’s a versatile grape that can be grown in different climates producing different tastes- it can survive with little water, but usually fails in climates where the temperature is extreme (high or low). So there’s the fruit forward and also the more rustic/earthy.

If you’re drinking chianti (note that it must always be made with at least 70% sangiovese) or chianti classico, chances are very high that the grapes producing that bottle are sangiovese. Also very big in Montepulciano. One thing to note is in Italy you are going to get the name of the region on the bottle. Much less often you’ll find the grape variety.

Because of its high acidity, pairings with cheese and meats – it’s really going to be able to cut through those fats and maintain presence.

Some of these wines must be aged for 2-5 years. Vino de Nobile di Montepulciano (NOT TO BE CONFUSED with the Montepulciano grape) is 2 years.