Morris Hall, PLLC

Estate Planning Attorneys

MakePayment with multiple options
CALL NOW: 1 (888) 222-1328
  • Home
  • Our Firm
    • About Morris Hall
    • Attorneys
    • Our Team
    • Morris Hall Core Values
    • Communities We Serve
      • Arizona
        • Carefree
        • Flagstaff
        • Mesa
        • Oro Valley
        • Phoenix
        • Prescott
        • Scottsdale
        • Sedona
        • Tucson
    • Career Opportunities
  • Our Services
    • Asset Protection
    • Probate
    • Tax Planning
    • Trusts
    • Trust Administration
    • Wills
  • Resources
    • Blog
    • Do I Need an Estate Plan?
    • Elder Law Reports
    • Elder Law Resources
      • Phoenix Elder Law
      • Tucson Elder Law
    • Estate Planning Problems
    • FAQs
    • Probate Resources
      • Probate
      • Flagstaff Probate
      • Phoenix Probate
      • Sedona Probate
      • Tucson Probate
    • Published Books
      • Don’t Go Broke in a Nursing home
      • Tax Free Money for Long-Term Care!
    • Recent Law Changes and Improvements Affecting Arizona
      • Update My Living Trust
    • Reports
    • Videos
    • What to Do When Death Occurs
      • What Not To Do When Someone Dies
      • Who To Contact After A Loved Ones Death
  • Reviews
    • Testimonials
    • Review Us
  • Locations
  • Events
    • Seminars / Webinars
    • Past Webinar Recordings
  • Contact
    • Consultation Policy
    • Contact Us
    • Discounts

Basics of Estate Planning: Getting the Most out of Charitable Gifts

May 8, 2018 by Theron M. Hall Jr. Leave a Comment

Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,
American Academy of Estate Planning Attorneys, Inc.
This is another in a series of blogs on the basics of estate planning.
Often, an individual wants to make a gift to charity. They don’t want something complicated, but they want to get the most bang for their buck.
Estate planning attorneys and other financial professionals know the client could just contribute cash to the charity. Certainly, that would be fine with the charity. But, there are ways which would be just as good for the charity, and would give a better result to the donor.
Perhaps the easiest way to get an increased bang for the buck is to give appreciated securities. If appreciated securities are given directly to a public charity, the client gets to deduct the full fair market value of the security and never pays tax on the gains which had occurred while the client held the property. 
Let’s look at a quick example. Mary purchased Apple stock in its early days for what would be $10 per share, adjusting for splits in the interim. The stock is now worth $150 per share. Mary is considering giving 100 shares to charity. If Mary sells the stock, she will realize a gain of $150 less her basis of $10, or $140 per share, or $14,000. Depending upon her tax bracket and her state income taxes, she is likely to pay 20% or more of that in taxes. That would be $2,800. She could contribute the resulting cash, $15,000 less the tax of $2,800, or $12,200 to charity and would get a charitable deduction for up to that amount. 
If, on the other hand, Mary gave the 100 shares of stock to the charity, she would not have realized the gain and would not have owed the $2,800 in tax. She would get the income tax deduction for the full $15,000 (assuming other limitations, such as on itemized deductions, etc., do not apply).
When the charity sells the stock, it will not have to pay tax on the gain as a tax-exempt entity. Thus, by giving the appreciated stock to the charity, Mary is better off because she gets a larger deduction. The charity is also better off because it receives property worth $15,000, instead of $12,800 in cash. 
Using this simple trick, clients may easily get more bang for their charitable buck. 
Upcoming blogs will examine more of the basics of estate planning.

  • Author
  • Recent Posts
Theron M. Hall Jr.
Theron M. Hall Jr.
Senior Partner at Morris Hall, PLLC
Theron M Hall, Jr. (aka Tim) learned early in life the need of proper management of estates for their preservation. Born and raised in Apache County, Arizona, Tim worked for his parents’ title company as a youth, where he gained a lasting appreciation for those who work hard to acquire their estates. Now, as an estate planning attorney, protecting his clients’ future through quality legal service has become his hallmark.
Theron M. Hall Jr.
Latest posts by Theron M. Hall Jr. (see all)
  • Phoenix Estate Planning For Children - December 15, 2022
  • Social Security Retirement: Understanding The Benefits - November 18, 2021
  • Probating an Estate: 5 Reasons to Hire a Lawyer - November 4, 2021

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

MH logo

Main Office

7600 N 16th St, Ste 105

Phoenix, AZ 85020

Phone: 602-249-1328

Fax: 602-248-2887

Subscribe to Our Newsletter

For a sample Click Here

Offices

Our law firm proudly serves many areas in Arizona. See all of our locations here.

Our law firm proudly serves the state of Arizona.  See all of our locations here.

Toll Free: 888-222-1328

Mon-Thur: 8:00am – 5:00pm
Fri: 8:00am – 4:00pm

  • Linkedin
  • Twitter
  • Facebook
  • Youtube
  • Instagram

Need an Estate Planning Lawyer in Arizona?

Looking for an estate planning attorney near you? We have office locations in Phoenix, Mesa, Chandler, Scottsdale, West Valley, Carefree, Prescott, Sedona, Flagstaff, Tucson, and Oro Valley in Arizona so please visit us at the location that is closest to you.

  • © 2023 American Academy of Estate Planning Attorneys, Inc All rights reserved.
  • Disclaimer