Law Office of Jonathan Ackerman, LLC - Newsletter
Volume 6.2 - 2020
Jonathan was recognized by BestLawyers® as a Lawyer of the Year for 2021
Jonathan briefly describes his work with charities & in charitable gift planning
Some Happenings

The Shoe Keeps
Dropping on the
District of Columbia
Estate Tax 'Zero Bracket Amount'
 
Update to Newsletter, Volume 5.1 -
The first shoe dropped in D.C. as a consequence of the Federal Tax Cuts and Jobs Act of 2017 ("2017 Tax Act"). However, it has been reported that D.C. will be further reducing its estate tax exemption amount to $4 Million. [more...]

Probate v Nonprobate Property - Understanding the difference between probate and nonprobate property can be the determining factor in assuring that a deceased person's (decedent) estate planning goals are fulfilled. [more...]
 This Newsletter has TWO OTHER FEATURES!!
 
 ARCHIVE 
to view past articles in previous Newsletters

blog to comment on (or ask questions) regarding any article in a Newsletter
The Law Office of Jonathan Ackerman, LLC will continue releasing video vignettes on substantive topics of interest to nonprofit organizations and their officers, directors, trustees, volunteers, and donor.

Each recent Newsletter includes a link to a video on topics of interest to nonprofit organizations, such as conflicts of interest, fiduciary duties and liabilities, gift acceptance guidelines, and various issues relating to the creation and maintenance of an endowment, among others.

Video - Charity Endowment - Types & Purposes

In this video, Jonathan discusses the fundamental issues associated with the decision by a charitable organization to create an endowment, and generally addresses the types and purposes of endowments. This video presents fundamental concepts of importance to anyone who is currently serving, has served, or is thinking about serving as a director, trustee, officer, or committee member of a charitable organization.
This video is for informational purposes only and does not constitute legal or tax advice on any matter. 

Visit www.ackermanlaw.net to learn more
about Jonathan's law practice.
Nonexempt Charitable Trust - Issues & Answers - Part II - Some Solutions

This article was first published in Planned Giving Today, June 2019, Volume 30, Number 6, as slightly revised by its Editor, and is Part II of the article from Newsletter, 6.1 - Nonexempt Charitable Trust - Issues & Answers - Part I

You had requested your attorney to consider options for your institution in dealing with the testamentary trust described in Part 1 - The Setup, especially considering the fact that the donor stated her intentions of creating an outright bequest to your institution subject only to broad use restrictions. In response, your attorney has talked to you about two possibilities.

One is to have the trust file a Form 1023 with the IRS to obtain private foundation status. If that happens, the trust would no longer be required to file a Form 1041 as a taxable trust (along with the Form 990-PF). In that event and depending on the character of the trust's assets, the trust should also run no unexpected risk of incurring tax on its investment income, because it qualifies as a tax-exempt organization. However, the trust will still be a separate entity and be required to maintain its own accounting and investment account, and will be subject to the rules, definitions, excise taxes, and prohibited acts of a private foundation.

So, what is your second option?

[more...]
Copyright 2021 Law Office of Jonathan Ackerman, LLC
Disclaimer - The material in this Newsletter (including the attachments hereto) is provided for informational purposes only and does not constitute legal or tax advice on any matter. Law Office of Jonathan Ackerman, LLC assumes no responsibility for the accuracy or timeliness of any information provided herein. This information is not a substitute for obtaining legal or tax advice from the reader's own counsel, based upon their own particular set of circumstances. Charitable Registry, LLC is not a law firm and does not render legal advice of any kind.
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