Shifting Gears: Rising Inflation and Interest Rates Impact on Charitable Planning

5 (1 vote)

This session will explore the unprecedented rapid rise in the 7520 rate in recent months. Planners will learn while the current environment increases the present value of a straight income interest or, much less dramatically, a unitrust interest, it sharply reduces the present value of a fixed annuity. The income tax benefit of setting up a gift annuity, or a charitable remainder annuity trust, is greatly increased, as a higher section 7520 rate assigns more value to the residuum.

The participant will be able to discuss how certain charitable strategies are more or less attractive in a higher interest rate environment
The participant will learn how to calculate the benefits of vehicles like gift annuities and charitable remainder trusts
The participant will gain a better understanding of more complex planning opportunities like retained life estates or life income termination donations

Bryan Clontz Ph.D., CFP®, CAP®, AEP®

President

Charitable Solutions, LLC

Bryan Clontz is the founder and president of Charitable Solutions, LLC, specializing in non-cash asset receipt and liquidation, gift annuity reinsurance brokerage, actuarial gift annuity risk management consulting, emergency assistance funds, as well as virtual currency and life insurance appraisals/audits. He also serves as Senior Partner of Ekstrom Alley Clontz & Associates – a community foundation consulting firm in Tucson, AZ.

John M. Hayes

Senior Vice President of Charitable Estate Planning

American Heart Association

John Hayes is senior vice president of Charitable Estate Planning for the American Heart Association — an organization passionately committed to its mission to be a relentless force for a world of longer, healthier lives.

In his role, John leads the association’s nationwide efforts to obtain charitable contributions of non-cash assets and deferred charitable estate donations. John’s specialties include gifts funded with cash, equities, life insurance, or property through vehicles such as bequests, charitable gift annuities, beneficiary designations and charitable trusts.

John has championed the AHA’s mission for more than 16 years. Under his leadership, the AHA has:
• Established the American Heart Association Professional Advisor Network, which includes more than 13,000 professionals: including attorneys, financial advisors and wealth managers.
• Created the American Heart Association Donor Advised Fund Program, which provides mission-aligned investing for donors with the AHA Tobacco-Free investment program.
• Expanded the types of non-cash assets accepted for charitable giving — providing our donors with more creative ways to give, including an innovative system that makes it easier for them to make real estate gifts.