SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Senior who wrote (60231)12/23/2017 10:28:56 AM
From: E_K_S  Read Replies (1) of 78954
 
OT - Tax and charitable giving

I was planning on giving shares of stock to a charitable foundation/organization and/or fund several 529 plans. I still need to research this and not all organizations can/will take stock. The idea is to use stock that has a very low cost basis (pretty easy if you are a Buy and Hold value investor). I see there are intermediaries that will allow you to fund a "giving" account w/ your stock and then designate the organization (or person/family/beneficiary) to whom the gift is for; year and amount.

I heard a description of this on a Motley Fool podcast and it sounded like a good way to use your low cost basis stock and get the maximum benefit from that from your donation. The intermidiatery (I think Schwab may have such a service) accepts the stock on your behalf and they then sell a few of those shares based on the amount and schedule you set up. Your distribution schedule can be for several years too. I believe you get the full tax benefit of the contribution based on the date you transfer your stock to the intermediary. You have to watch out for special fees (typically quite high too) if a bank trustee/administrator is used.

I may be mistating the steps and/or process as I have not done more research but the general concept sounds interesting. It could help in estate planning since you could fund a percentage of your estate directed to charitable contributions and have that titled to the name of your family trust. Then it is up to the Trustee to maintain the list of the organizations that are to be funded, dates and amounts.

Happy Holidays and a profitable, Healthy New Year.

EKS
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News