Renaissance News
Volume 6-11
November 7, 2006
Renaissance News

Are Private Annuity Trusts Dead?

On October 18, 2006, the Treasury released proposed regulations that effectively eliminate the tax deferral benefits previously available to private annuity trusts (PATs). These regulations now require that the entire gain on the exchange of property for a private annuity must immediately be included in the taxable income of the transferor. This treatment negates the previous rule that permitted the recognition of a portion of the gain with each annuity payment. One of the Treasury's specific concerns with private annuity trusts was the perception that they defeated the requirement that a private annuity be an unsecured agreement. Exchanges of appreciated property for a private annuity are now treated the same as exchanges of appreciated property for a commercial annuity.

Free Administration
for 2006:

That's right, Renaissance is offering free administration for 2006 to all existing charitable remainder trusts brought to Renaissance by 12/31/06. Administration at Renaissance is not just the tax preparation at year end. Our services include an audit of the 2005 tax returns, accounting for 2006, calculation and payment of distributions, a complete compliance review and much more. Also, the trustee will receive peace of mind from our staff dedicated to exceptional customer service and timely results.

Click here if you would like to learn more about this special offer or feel free to contact one of our Consultants directly at (800) 843-0050.

RENAISSANCE PRACTICE DEVELOPMENT FORUM
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Renaissance held its final Practice Development Forum of 2006 in Las Vegas on October 5 -6. What a great group of people we had! Thanks to all the attendees for your participation. Be on the look out for special mailings and case strategies just for you.

We will soon be announcing our 2007 dates and locations.

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Special Fee Discount:

We are currently offering a 10% lifetime CRT administration fee discount for all CRTs who name the Renaissance Charitable Gift Fund as at least a 50% irrevocable beneficiary. Call Renaissance today at 800.843.0050 to learn how you can take advantage of this special offer.

CASE STRATEGY:
Brady - Donor-Advised Fund Lets Couple See Charitable Benefits During Lifetime
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Several years ago Al and Ellen Brady used a charitable remainder trust to defer capital gain taxes on the sale of appreciated stock. While they enjoyed the financial benefits and know that charity will benefit in the future, they would like to see the benefits of their charitable giving during their lifetime. They are now ready to sell another block of stock with a low basis and their financial advisor suggests a donor-advised fund at the Renaissance Charitable Foundation. The Bradys will receive an immediate income tax deduction and avoid capital gain tax on the sale of stock. They will be able make annual grant recommendations from their Fund to their favorite charities, and in the future include their children in the grant recommendation process.

Click Here to learn more about this exciting new charitable solution example.

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RENAISSANCE:
Out and About

  • November 10 - Kyle Christopherson will be attending the Financial Planners Association quarterly meeting in Indianapolis, IN

  • November 16 - Jeff Christie will be speaking at NAIFA in Greenfield, IN

  • December 13 - Kevin McGrath will be speaking at SAGE Dinner Seminar in New York, NY

  • December 18-19 - Kevin McGrath will be speaking at SFSP chapter in Denver, CO

IRS Discount Rates for 2006:

November: 5.6%
October: 5.8%
September: 6.0%

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CHARITY PROFILE:
Renaissance Charitable Foundation

Have you been looking for a way to help streamline your client’s annual charitable gifts? Or maybe your client is looking for a way to have the look and feel of their own private foundation without the expense. Look no further than the Renaissance Charitable Gift Fund offered through the Renaissance Charitable Foundation. Since 2000, RCF (a public charity) has offered a donor-advised fund to accomplish the philanthropic goals of hundreds of donors, supporting a variety of charities. Over 2,000 grants to various charities nationwide have been made over the last year from RCF donors.

This exciting tool will can help your clients qualify for an immediate income tax deduction, avoid capital gains from the sale appreciated assets and extend their charitable gifts over an unlimited number of years. Through managing the assets of the fund and growing the fund value, you can participate in your client’s philanthropic goals and assist in establishing their family legacy.

For your clients who need an income stream along with a charitable deduction, RCF is licensed to offer a charitable gift annuity in 39 states. A CGA can provide your clients with an immediate income stream, create a charitable deduction and provide an immediate gift to charity.

To learn more about RCF and the benefits is offers to hundreds of donors, click here for information or contact RCF directly at (866) 803-0389, option 1.

ADMINISTRATION CORNER

As we move into Fall, Client Services is already preparing for tax season. In November, notices will be sent out reminding clients of any information that is needed for 2006. The Customer Service Coordinators will be validating contact information as well as confirming mailing locations for clients who relocate throughout the year.
"If you have the knowledge, let others light their candles in it." -Margaret Fuller