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A gift agreement is highly recommended for a person desiring to create a legacy gift in their estate plan for their family while also assisting a public charity.  A donor should consider a gift agreement if they have a significant complex gift, if the donor has restrictions on the gift or if the charitable organization will receive the funds later.  In these situations, the agreement is necessary to ensure the donor’s promise can be relied upon, set expectations of the donor and donee, and prevent any misunderstanding of the terms of the gift. 

Gifts of stamps, coins, antiques or other collections will normally involve a deed of gift or letter of gift and physical transfer of the tangible personal property. With a collection, the letter or deed of gift should identify the type of collection and the number of items and include a general description of the property condition. The description should be sufficiently detailed to transfer the copyrights of the work(s) as appropriate.

IRAs have long been valued for charitable giving, particularly as deferred gifts.  The Setting Every Community Up for Retirement Enhancement (SECURE) Act, which became law on December 20, 2019, makes several changes that could make charitable planning with retirement assets even more appealing. On Feb. 23, 2022, The U.S. Department of Treasury released proposed regulations, clarifying its interpretation of inherited IRA changes under the SECURE Act.

Donors treasures like valuable antiques, stamp and coin collections, works of art, cars, boats, and other personal property can make suitable charitable gifts today or after their lifetime.

Returning a donor’s phone call and answering a couple of questions is easy.   But what about when the conversation has shifted from donating real estate to a CRUT, and they want more information on how it works? The best way of moving this type of donation forward would be by writing an informative letter that spells everything out for your prospects so there are no hiccups in their giving process! This takes much more time and dedication to details, and if you don’t follow up with speed and precision, you won’t move this type of gift conversation forward.  

When a life estate is established, the donor retains the life use. Under the common law of most states, the life tenant is obligated to maintain the property. However, a written agreement that clarifies the roles and responsibilities of both the donor and the charity is crucial.