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Trusts & Estates Law/Carryover Strategy and Tax Consequences

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Question
Mr. Disraeli
I am planning to make a gifts to my alma mater with common stocks I own upon my passing. If I were still alive, I would benefit from the deduction as a charitable gift on my Federal Income tax. However, having passed, there should only be a final Federal and State Income Tax on whatever income was received for the year. Credit for the donation would probably exceed the amount allowed for the year, and since there would be no future filings, carryover would be lost. However, if the securities were to be willed to my daughter, with the understanding that they were to be gifted to the school, would she not benefit with credit for the donation which could carryover for her for another four years?
Also, since inheritances are not Federally taxed I don't know about States (Washington, New Hampshire, North Carolina?) - would this not avoid affecting her AGI?
Thanks.
DBRJ

Answer
Hello sorry for my delay as I have been moving.

I don't know know the carryover works after death.  I doubt it exists.  Your daughter cannot inherit a tax credit from you.  She would have to make the contributions and deduct them or carry them forward.  Inheritances ARE taxed if they are over the maximum deduction,  but not as an income tax.  It is a separate return.  

I don't know about the states either.  Hope this helps.

David Disraeli

Trusts & Estates Law

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David Disraeli

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I can answer general questions about estate planning and trusts. I can also answer questions about estate tax reduction and advanced charitable giving, family partnerships and asset protection. I may have already answered your question here: www.lifeplanblog.com or here www.pcfo.net

Experience

I have worked for 24 years with clients and their attorneys to formulate estate plans to meet client goals. I have found many mistakes made by client attorneys and were able to have them corrected. I focus on making sure that beneficiaries are protected from current or future spouses and lawsuits so the wealth stays in the family. I have also published a book on Aging Parents which can be found on Amazon https://www.amazon.com/dp/B003VP9WTG

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President and founder of The Personal CFO Inc.

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www.pcfo.net www.lifeplanblog.com

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Certified Financial Planner 1994

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