Planned Giving

Clocking in at 503 pages, the new tax law became effective on January 1, 2018. The provisions relating to individuals are set to expire at the end of 2025. That means that unless Congress acts before then to extend the provisions or make them permanent, in 2026 the current (2017) law would be back in effect.  Provisions related to business taxes do not have an expiration date.

What is in the Law that Affects Charitable Giving?

  1. The charitable deduction will be retained. Some other itemized deductions will be eliminated or subject to limitations.  State and local taxes will be deductible only up to a combined annual limit of $10,000. Deductions for mortgage interest will be limited to $750,000 of debt for those married filing jointly.
     
  2. The law increased the standard deduction to $12,000 for singles, $24,000 for married couples filing jointly, and $18,000 for heads of households.  Your deductions (including your charitable deductions) will not reduce your income tax unless their total exceeds your applicable standard deduction amount.  
     
  3. There is an increase in the adjusted gross income (AGI) limitation on charitable gifts of cash to public charities from 50% of AGI to 60% of AGI. The AGI limitation on charitable gifts of appreciated property to public charities will remain 30% of AGI. If you itemize, you will continue to be able to carry forward deductions subject to either limitation for up to five years.
     
  4. The gift tax, estate tax, and generation skipping tax will continue and estates will still be entitled to an unlimited estate tax deduction for charitable gifts. However, the exemption amounts for each of these taxes will double to $11.2 million per individual, ($22.4 million for gift and estate tax for married couples).
     
  5. The law repeals the 80% charitable deduction for gifts made in exchange for college athletic event seating rights.

How will the Tax Reform Act affect you and your charitable giving? 

While there will be an increase in the number of individuals claiming the standard deduction, if you live in a state with high income and property taxes and you have a mortgage, you could find that you still itemize and thus can make use of your charitable deductions.       

Even if you don’t itemize, here are some strategies to make gifts to charity and still receive tax benefits:

  • Make gifts of appreciated property such as publicly-traded securities to charity. The new law will still allow you to make gifts of appreciated assets you have owned for at least one year without triggering capital gain tax.  If you itemize your deductions, you will get the double tax benefit of an income tax charitable deduction based on the full value of your appreciated assets in addition to complete capital gain tax avoidance.
     
  • Make gifts to charity using the charitable IRA rollover. If you are over 70½, you can make a direct transfer from your traditional IRA or Roth IRA to charity of up to $100,000. You will avoid all income tax on your withdrawal, even if you don’t itemize after the new law!
     
  • You can make larger gifts to charity. Your total deductions may put you close to the threshold where itemizing your deductions offers greater tax benefits than taking the standard deduction. In this case, you might consider making a larger charitable gift so that you can enjoy the additional tax savings that itemizing would offer.
     
  • Include a gift for charity from your estate. The new tax law retains current law and does not impose limits on estate tax charitable deductions. If you have sufficient assets and may be subject to estate tax, you might consider a gift to charity from your will, trust, or other estate planning documents.  Such a gift will reduce your estate tax burden.
     
  • Make a gift to charity from all or a portion of what’s left in your retirement plan. Assets in your IRA, 401(k), or other qualified retirement plan may be subject to income tax when distributed to heirs. Making a charity a beneficiary of a portion or all of your retirement plan will avoid the income tax that might otherwise be due from your heirs. This is an extremely tax efficient way for you to make gifts to charity that costs your heirs less than giving other kinds of assets.  

You should always contact your accountant or financial planner to understand how the new tax law will affect your individual tax situation. Do not hesitate to contact Christine Birkett at 772.403.4580.

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A Message from Our CEO

Susan de Cuba

President and Chief Executive Officer

Few creatures inspire as much wonder as the hummingbird. Tiny, yet strong enough to migrate 500 miles across the Gulf of Mexico, this brilliant bird is the ultimate symbol of resilience. So it’s only fitting that we have incorporated a hummingbird into our new look and logo to symbolize our organization’s life-affirming mission.

Under the Treasure Coast Hospice name, we have grown our services beyond our cornerstone hospice program to include palliative care, grief support counseling and specialized pediatric care. To better reflect our expanded scope of community services, we have changed the name of our parent organization to Treasure Health, while our flagship hospice program will continue to be called Treasure Coast Hospice.

Hospice will always be the heart of our mission. The same outstanding care the community has known since 1982 will continue. The experience we’ve gained during the past 35 years translates well to other services that improve quality of life. Our full spectrum of support includes Treasure Coast Hospice, Treasure Health Palliative Care, Treasure Health Pediatric Care and Treasure Health Grief Support.

With all of our services, our goal is to empower patients and families with the knowledge and support they need to make every moment count.  Guiding our efforts is a caring community of health professionals, volunteers and donors. Like me, they believe that in all stages of illness, everyone deserves to experience the best possible quality of life.

With our comprehensive, compassionate approach to palliative care, hospice services and grief support, we are building communities that allow people to drive their own destinies for the highest quality of life in every health circumstance.

We are excited to embrace a fresh brand that helps us promote our life-affirming philosophy and look forward to having you join us as a trusted partner in supporting our community’s healthcare journey.

For more, see our spring newsletter
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Five Wishes ®

“Five Wishes ®” is an easy-to-use legal document written in everyday language to help you plan how you want to be cared for in case you become seriously ill. It is America’s most popular living will.

You decide: With more than 18 million copies in circulation, “Five Wishes ®” helps you express what you want in the areas that matter the most to you: personal, spiritual, medical and legal. It helps you describe what good care means to you, whether you are seriously ill or not, so your caregiver knows exactly what you want.

Gift to your family: “Five Wishes ®” can help start and guide family conversations in advance of serious illness, so completing it is a gift to your family, friends and also your doctor. It keeps them out of the difficult position of having to guess what kinds of treatment you want or don’t want.

Meets Florida law: “Five Wishes ®” meets the legal requirements for an advance directive in Florida and 41 other states. All you need to do is check a box, circle a direction, or write a few sentences. Once it is signed and witnessed, your “Five Wishes ®” becomes a legal document.

To learn more about “Five Wishes ®”or to schedule a presentation for your group or community, please email Craig Perry  in Martin County or Tracey Kinsley in St. Lucie County.