Attorney Samuel Kaufman: Estate Planning Is An Act of Love

Pandemic Causes Rise in Wills

One of the many effects of the pandemic has been the sharp increase in the number of people creating wills and estate plans. “We are seeing that here and with more of a sense of urgency in some cases,” says Key West attorney Samuel Kaufman.

Creating an estate plan is an act of love, says Sam, because “putting everything in place makes it a seamless process for loved ones when the times comes.” Creating a will isn’t as expensive or as time consuming as people think. “There’s no rea­son to reinvent the wheel when there are tools and resources already in place,” says Sam.

One of those resources is CFFK, which can help donors and professional advisors with charitable planning, making legacy gifts, setting up personalized funds, and more. “The Community Foundation is a great resource for individuals who want to be assured that their money is safely accounted for and distributed according to their wishes,” says Sam.

Many people put off doing estate plans because they want to avoid their own mortality. Having a plan in place, according to Sam, allows families to avoid dealing with probate and organizing an estate during the grieving process, and allows a donor’s specific wishes to be followed.

“Put the plan in place before it’s too late, due to illness or other circumstances,” says Sam. “Most people think about taking care of their family first, and then what portion they want to leave for charitable purposes to sup­port the community.”

CFFK can help professional advisors maximize their clients’ giving while also benefiting the Keys community for the future. Contact CFFK for assistance at cffk@cffk.org or 305-292-1502.

Over the last 15 years, Sam Kaufman has represented hundreds of clients in areas of Estate Planning, Probate Administration, Wills and Trusts, Family Law, Personal Injury, Criminal Defense, Civil Litigation, and other legal matters. He is also a Key West City Commissioner.

Boosting 2021: Congress Extends Charitable Giving Incentives

Now is a great time to make charitable giving plans for 2021. Nonprofits will be relying on generous donors for the foreseeable future to stay afloat and serve the people who need their programs and services.

For those donor clients that philanthropy is a priority, here’s a few tips to help make 2021 a better year for our Keys community.

1. Even non-itemizers of tax deductions should plan to make at least a $300 contribution to qualifying charities ($600 for non-itemizing joint filers) this year. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, known as the Coronavirus Stimulus 2.0 bill, was passed by Congress in late December. The legislation extends the CARES Act’s charitable deduction for contributions to qualifying public charities for 2021.
2. The Coronavirus Stimulus 2.0 bill also includes a one-year extension of the CARES Act’s provision increasing charitable deduction limits to 100 percent of Adjusted Gross Income for contributions by individuals to qualifying charities. This creates an opportunity to work with clients on a charitable giving budget for 2021, especially because running calculations can determine whether clients can benefit from this incentive, or whether they would be better carrying forward charitable contribution deductions into future years.
3. Given the extensions included in the Coronavirus Stimulus 2.0 bill, coupled with the uncertainty about potential new tax reforms, clients will want to be organized about charitable giving in 2021 and conscientious about the impact of dollars invested in the community.

As always, we would be pleased to help professional advisors and your clients. For example, donor-advised funds and other planning vehicles through the community foundation can help your clients organize their giving and maximize results for the causes they care about.

In-Kind Gifts: Take Note of New Accounting Rules

Gifts in kind have played an important role in pandemic relief efforts, with more than $200 million worth of goods already contributed. Giving inventory, contributing the use of fixed assets, and donating pharmaceuticals are just a few examples of ways clients may be supporting causes they love.

For businesses, individuals, and nonprofits looking at the reporting requirements and taxation of in-kind gifts, new standards are taking effect this year issued by the Financial Accounting Standards Board (FASB).

Nothing has changed about the proper way to value and recognize gifts in kind. Reporting entities, however, are now required to disclose more details about valuation and use of the donated goods and present these details more prominently, including as a separate line item in the statement of activities.

The change is part of a continuing effort to achieve more transparency in charitable giving and maintain integrity in tax-deductible transactions.

Keeping Our Community Strong: Your Role is Critical

The COVID-19 pandemic has significantly impacted Keys nonprofits, including programs, services, supplies, staffs, and budgets. This means nonprofits need philanthropic support now more than ever.

At the same time, some donor segments have been steadily losing confidence in the nonprofit sector, according to the Give.org Donor Trust Report 2020: Trust and Giving During the COVID-19 Outbreak. 

For example:

1. Although 24.4% of study participants reported in late 2020 that they planned to give more to charities, that figure represents a drop of more than 6% since early 2020.
2. Gen Zers are more likely than other generational cohorts to shift from giving money to charities to supporting local businesses instead. Specifically, 28.6% of Gen Zers report this preference, compared to 0% of Matures and just 1.9% of Boomers.
3. Related, 26.3% of Gen Zers report that they are not satisfied with traditional charitable donations.

As a trusted advisor to clients and families across generations, you can help clients understand the impact of nonprofits, how to measure the success of their charitable gifts, and how to select nonprofit organizations who are delivering the greatest return on investment to the people they serve.

Our team at CFFK is deeply familiar with the needs of the community and the nonprofits who are fulfilling them. We hope you won’t hesitate to reach out for support as you help your clients navigate ways to address our community’s challenges.