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FLATHEADBEACON.COM BUSINESS MONTHLY NOVEMBER 27, 2013 | 33

FINANCIAL CORNER Jesse Rigler
Preserve
Sharing Your ‘Bounty’

Can Be Rewarding

the Tradition
T
HANKSGIVING IS ALMOST tate. The estate tax is consistently debat-
here in the Flathead Valley. If you ed in Congress, and the exemption level

have the inancial resources to has luctuated in recent years, so it’s not
provide a comfortable life for your fam- easy to predict if you could eventually
Anika ily, you have reason to be thankful. And subject your heirs to these taxes. None-
if you can aford to share some of your theless, you can still work with your tax
Murphy, 14
“bounty” with charitable organizations, and legal advisors now to take steps to
you may want to be as generous as pos- reduce any possible estate tax burden in
sible — because your gifts may allow you the years ahead.

to both give and receive.
One such step might involve estab-
with a buck she killed By donating cash or other inancial lishing a charitable remainder trust. Un-
assets, such as stocks, to a qualiied char- der this arrangement, you’d place some
west of town. It was ity (either a religious group or a group
assets, such as appreciated stocks or real
estate, in a trust, which could then use
Anika’s irst deer and we these assets to pay you a lifetime income
“YOUR GIFTS MAY ALLOW YOU stream. When you establish the trust,
are all proud of her!
you may be able to receive a tax deduc-
TO BOTH GIVE AND RECEIVE.”
tion based on the charitable group’s
“remainder interest” — the amount the
charity is likely to ultimately receive.
that has received 501(c)(3) status from (This igure is determined by an IRS for-
the IRS), you help beneit an organiza- mula.) Upon your death, the trust would
tion whose work you believe in — and, at relinquish the remaining assets to the
the same time, you can receive valuable charitable organization you’ve named.
It’s better to take your child
tax beneits.
Keep in mind, though, that this type of
hunting than to go hunting To illustrate: If you give $100 to a trust can be complex. To establish one,
for your child!
qualiied charity, and you’re in the 25 you’ll need to work with your tax and le-
percent tax bracket, you can deduct gal advisors.
$100, with a tax beneit of $25, when you Of course, you can also choose to
ile your 2013 taxes. Therefore, the real provide your loved ones with monetary
Sponsored by Flathead Wildlife, Inc. and Montana Fish, Wildlife and Parks
“cost” of your donation is just $75 ($100 gifts while you’re still alive. You can give
minus the $25 tax savings).
up to $14,000 per year, per individual, to

Furthermore, if you donate certain as many people as you choose without
types of non-cash assets, you may be incurring the gift tax. For example, if
able to receive additional tax beneits. you have three children, you could give
Suppose you give $1,000 worth of stock them a cumulative $42,000 in a single
to a charitable group. If you’re in the 25 year — and so could your spouse.
percent bracket, you’ll be able to deduct Thanksgiving is a ine time to show
$250 when you ile your taxes. And by your generosity. And, as we’ve seen, be-
donating the stock, you can avoid pay-
ing generous can be rewarding — for
ing the capital gains taxes that would be your recipients and yourself.
due if you had eventually sold the stock Edward Jones, its employees and i-
yourself.
nancial advisors are not estate planners
To claim a charitable deduction, you and cannot provide tax or legal advice.
have to be able to itemize deductions on You should consult your estate-planning
your taxes. Charitable gifting can get attorney or qualiied tax advisor regard-
more complex if you choose to integrate ing your situation.

your charitable giving with your estate
plans to help you reduce your taxable es-

Jesse Rigler is a inancial advisor at Edward Jones in Kalispell.

MONTANA STATE LIQUOR STORE

KALISPELL
Celebrate the Located near
season with gifts LIQUOR
Smith’s and
of fine wine and Super 1 Foods in Open Sundays in December:
STORE
spirits!
Central Kalispell
Noon - 4pm

Kalispell on Center Street •752-5581

154 3rd AVE EN, KALISPELL | 406-257-3840