Renaissance News
Volume 6-12
December 4, 2006

Do I Really Need a Qualified Appraisal for my Gift to a Charitable Remainder Trust?

The need for a qualified appraisal is often overlooked by a donor, however it is never overlooked by the Internal Revenue Service. Any gift over $5,000 to a charity, other than cash or a publicly traded security, must have a qualified appraisal to substantiate the charitable deduction. This rule does not only apply to an outright gift to charity but also to a contribution to a charitable remainder trust. What is a “qualified appraisal”? Who can serve as a “qualified appraiser”? What are the filing requirements with respect to a qualified appraisal?

Click here to learn the answers to these questions and much more about the qualified appraisal rules.

Document Drafting Sale

Use the R-Buck here between now and December 31st and receive $250 off the regular document drafting fee of $500.

3,000+ law firms nationwide use the Renaissance Custom Document Assistance Service for its precision, effectiveness, responsiveness, and 18+ years of unchallenged legal status. Our Custom Document Order Form, comprehensive fact-finder, and checklist allow us to customize each paragraph of the document to help the attorney meet the client’s goals and all legal requirements.

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Free Admin 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.

Some Restrictions Apply.

CASE STRATEGY:
Fillinger - Funding a Scholarship Program through a Donor-Advised Fund
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Buddy Fillinger, a recently retired teacher from Park High, desires to fund a college scholarship program to assist financially needy Park High graduates. He has $500,000 of appreciated stock that he has designated to fund the program but is not sure how to get started. He initially explored creating a scholarship fund directly with a local university but was unhappy with the potential restrictions with this option. He consults with his financial advisor who recommends that he create a Donor-Advised Fund to provide the annual funding for the scholarships. Buddy will receive an immediate income tax deduction and avoid capital gain tax on the sale of his stock. He will be able to serve on the scholarship committee and define the primary selection criteria for acceptable recipients that will afford deserving students the opportunity to attend college and further their place in the world.

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

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RENAISSANCE:
Out and About

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

  • January 31 - Greg Baker will be speaking at the Nationwide Advanced Sales Meeting in Cincinnati, OH

IRS Discount Rates for 2006:

December: 5.8%
November: 5.6%
October: 5.8%

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CHARITY PROFILE:
Toys for Tots

Toys for Tots, a 59 year old charitable program run by the U.S. Marine Corps Reserve, provides happiness and hope to disadvantaged children during each Christmas holiday season. The toys, books and other gifts collected and distributed by the Marines offer these children recognition, confidence and a positive memory for a lifetime. It is such experiences that help children become responsible citizens and caring members of their community. Last year the Marine Corps fulfilled the holiday hopes and dreams of 7.5 million needy children. Since 1947 over 166 million children have been assisted. The mission of Toys for Tots is that no child go to bed on Christmas Eve without hope of being remembered on Christmas morning.

ADMINISTRATION CORNER

Tax season is quickly approaching. In preparation, advisors were notified in mid-November that on or about December 6th, a letter will be sent to each trustee reminding them to forward relevant information in order to ensure timely processing of tax returns. The type of information that must be forwarded promptly includes:
  • Financial Statements
  • Forms 1099
  • Schedule K-1 (for limited partnerships, limited liability companies. etc.)
  • Independent Special Trustee Schedules (for non-publicly traded assets)

We are making diligent efforts to contact every client by December 31, 2006 to validate contact information and resolve any pending issues like missing information or outstanding administration fees that could delay preparation of the returns. Promptly responding to requests will allow us to meet the expectations of our mutual clients.

Client Services extends warm wishes to you and your families for a safe and happy holiday season.
"We make a living by what we get, but we make a life by what we give" -Sir Winston Churchill