New to this post but not others.
Bought MMP today.
Sold my CIN to buy MMP.
CIN up 1.25% today, MMP down 1.50%.
Trading 4.5% dividend for 7.0% distribution.
CIN is being bought by DUK and premimum is priced in.
Other holdings in MLP's
KMP, PAA, APL, EPT, EPD.
Happy investing day.
"Likes": I'm doing many of the things you suggest; and, yes; the Salvation Army has been a godsend for the son of a good friend (an amphetamine addict), and they, along with a splendid animal shelter are candidates for a portion. I've set up a trust for my son, the principle of which reverts to a charity after his death. But, because I have a lot of direct experience with, and knowledge of, college bequests and endowments, I know how they can be routinely rerouted and reused for causes and cases I would never want them used for. The same goes for churches and arts organizations (again, I've sat on boards which routinely favor in their disbursal authority individuals and groups who would not be helped by any manner of private and/or government entitlements, but who survive primarily by their well-honed skills at portraying themselves as deprived and disadvantaged.) Earmarked gifts "gan aft agley" in the apt words of Robert Burns. For instance in the very department of the college from which I hold my PhD it's currently impossible to pursue a classical course of study, so funds left to them would only further devalue the curriculum. I am, however, interested in ideas and the pursuasive power of ideas, which is why the Olin Foundation interests me -- not only did it pursue research on some of the most logical ideas of the 20th century, it recognized that over time, the intent of charitable foundations becomes subverted (the Ford Foundation is a good example), and so it stipulated that all funds be spent in fifty years. So my charitable funds will be carefully focused. Indeed, it's a lot of fun to investigate entities who want money (and believe me there are a lot of them out there) and to read and learn and make sure that my life and life's savings will have made a difference!
I think it's great that you are thinking of leaving your estate (eventually) to a charity or charities, but if you don't have one that you REALLY love already, isn't there some family member who might appreciate it more than a charity that you haven't been involved with up to now?
If you have any young people at all who are related to you, I'm sure that it could make a major difference in their lives. (The purchase of their first home, paying off college loans, etc.)
If there is no one close to you, then look to organizations in which you at least have some interest. Did you go to college? How about setting up scholarships or endowing a chair in the department in which you studied? Do you like art? How about leaving it to a local or state Art Museum? Or music--any not-for-profit music groups in your community? Maybe you have a church, or public library, or hospital that has done a lot for your spirit or mind or body. And many, many people think that you can't go wrong with the Salvation Army. They continue to feed the poor and homeless and offer them a leg up when trying to rebuild their lives.
Maybe some inernet research (or time in your public library) would help you. There are sources out there that report what percentage of donations actually go to the charity and how much goes to the top officials who run the group.
I might suggest that before you finally put your wishes into your will that you volunteer at the charity of your choice (if it is at all possible) and see first-hand how it functions. You will either be happy with your decision, or your eyes will be opened and you will decide to keep evaluating other options.
I put my summer house in a personal residence trust, but it will be a cold day in hell when I would put my primary residence in such a trust. A home owned free and clear is one's last line of defence against adversity. it does not pay to get too cute trying to avoid taxes. My sister who did not listen to me is trying to unwind a personal residence, it is not easy to do. Have a good day.
"Want to avoid the death tax. Athena"
Might also read:
"Beyond The Grave"
Gerald M. Condon, Esq.
Jeffrey L. Condon Esq.
by Harper Business
The writers are older guys with a life time of experience and they tell examples of what can go wrong, even when you have good intentions, and think you played your cards right. They were brothers and estate attourneys in CA.
And a story from my home town. Example of what can happen if you listen to amatures.
Old man, only SS but he owned a small house in a small town, and could walk to the store, doctor, and the barber shop where the old guys went and sat on the liars bench to tell stories each day. He could live on this SS.
Had only one heir, his son. From his fellow old timers he got the idea to go to the court house and transfer his house to his son, and there would be no estate when he died.
His son had a heart attack and died.
His son's wife gave him 30 days to be out of her house. She sold it.
Have a nice day.
Ooooh, Chart and "loves" -- I'm working on our will right now. Yes, we have trusts, but after we're gone, we're leaving everything to charity (right now, I'm researching charities). There's an instructive book out on the Olin Foundation, why and how it was set up, and I've been meaning to read it -- wonder if anyone else has read it? Want to avoid the death tax. Athena
Remember the capital gains tax is currently only 15% (22 if one is paying AMT and has income between 175 and 375K). One does not have to sell. These tax cuts for the rich have doubled my tax bills because selling became a lot less painfull and I elected to pay the tax. If the inheritance tax rate were 15% with no exemptions it would be great by me, As to trusts I am fairly well maxed out. Have a good day.
"I didn�t realize that the new law would lower the cost tax basis!"
``SEC. 1022. TREATMENT OF PROPERTY ACQUIRED FROM A DECEDENT DYING AFTER DECEMBER 31, 2009.
``(a) In General.--Except as otherwise provided in this section--
``(1) property acquired from a decedent dying after December 31, 2009, shall be treated for purposes of this subtitle as transferred by gift, and
``(2) the basis of the person acquiring property from such a decedent shall be the lesser of--
``(A) the adjusted basis of the decedent, or
``(B) the fair market value of the property at the date of the decedent's death.
Note they will make it a gift, not a inheritance, and the gift tax life time rule will apply. By taking the lower of the two, the gov is saying, heads they win, tails you lose. The lower of the two makes the inheritor have the largest cap gains, thus largest taxes on the inheritor.
Welcome to greedy government.
That is how I see it. If you see it different, let us all know. I hate to be mis-informed.
I didn�t realize that the new law would lower the cost tax basis! I thought that those inheriting would get the DOD cost, or the cost six months after the DOD�whichever gives the inheritor the tax advantage.
I will have our CPA and attorney review things with us in more depth next appointment time. We had hoped our children and grandchildren wouldn�t have to go through the same �problems� we encountered with inheriting stock with the very low cost basis. It colors a lot of investment decisions�especially selling ones�when one has that kind of situation under which to work!
"I fear that the "death tax" won't be changed because not enough people are affected by it,"
What very few people know, is that the new law going in at the end of 2009 passes the tax on to the the inheritor. By lowering the cost basis to the next in line, they make them pay the tax when they sell. So the person inheriting the family farm, may find they have a near zero cost basis and will not afford to sell and pay the taxes.
Just a nice thought for the evening.
High inheritance tax IS a "scary thing"! I will never forget the look on my husband's face when he wrote out a check for over $1M to the IRS when his late uncle's estate tax was due.
I fear that the "death tax" won't be changed because not enough people are affected by it, and the majority of Americans don't care. But we still write to our Congressmen and hope! It isn't necessarily a "done deal" in 2009.
We are firm believers in trusts, and if your estate is reaching a sizeable amount, you might want to ask your attorney about it. (I'm sure, xcpa, that you already know if you need one.)