Formerly known as Planned Giving Round Table of Arizona
"Effects of Rising 7520 Rates on
Gift Planning Tax Incentives"
Russell A. Willis III, J.D., LL.M.
Consultant to Lawyers and other Tax Professionals
An Advisor to the Advisors
The section 7520 rate, which ascribes present values to income and remainder interests, has been rising rapidly in recent months. While the remainder after a life estate is losing value relative to the income interest, the present value of a remainder after a fixed annuity is rising sharply. This can have significant consequences not only for prospective planned gifts, but also for acceleration of existing arrangements. We need to be prepared to have meaningful conversations with our donors.
Arizona Charitbale Gift Planners