Parker’s (62) father passed away, and he inherited land in California. He plans to sell it to fund his retirement. He is wondering what the next steps are.
Parker’s concerns are:
- Tax implications of the sale
- Sufficient tax-efficient retirement income
- His father passed away from cancer, Parker is interested in funding research in that field.
By coordinating with a Rushton CPA, we were able to plan for the tax implications from the sale and retirement income needs. We also worked with Parker to create a Donor Advised Fund that will continue after he passes to maximize the amount he is giving to research. Our financial planning process helped Parker move forward into the next chapter of his life.
Generally, a donor advised fund is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor makes the contribution, the organization has legal control over it. However, the donor, or the donor's representative, retains advisory privileges with respect to the distribution of funds and the investment of assets in the account. Donors take a tax deduction for all contributions at the time they are made, even though the money may not be dispersed to a charity until much later.