Robert and Tracey were recent retirees who had dedicated their careers to cancer research. Although retired, Robert and Tracey still had significant taxable income each year from their pensions, IRAs, and taxable brokerage accounts. The couple wanted to execute a charitable-giving program that included donating to their alma mater, various non-profit children’s’ hospitals, and a mission through their church.

Robert and Tracey turned to Leelyn Smith to maximize the impact of their wealth by building a gifting strategy that was right for them.

Designing and executing a tax-efficient gifting strategy

Leelyn Smith first worked with Robert and Tracey to define a clear vision for their charitable giving. Using a series of structured conversations, we explored the couple’s financial objectives as well as the values that Robert and Tracey hold dear about making a difference in their community.

Leelyn Smith put together a 10-year gifting plan for the couple that accomplished all their charitable gifting requirements while eliminating as much tax liability as possible.

These strategies included the use of donor-advised funds for highly appreciated stock and qualified charitable distributions to reduce the taxable portion of required minimum distributions (RMDs) from their IRAs. Leelyn Smith paid close attention to the timing of each gift to take advantage of the standard deduction in certain years and take large, itemized deductions in others.

The value of a holistic, team approach to managing your financial life

Through open communication between our tax and financial advisors, Leelyn Smith pursued the couple’s goals for tax-efficient charitable gifting while rebalancing the portfolio to keep their asset allocations aligned with the risk tolerance, goals, and timeframes. By quarterbacking efforts with the couple’s accountant and financial advisor, we empowered Robert and Tracey to focus their time on the charitable organizations that they care about most.

At Leelyn Smith, we take a holistic approach to managing our clients’ financial, tax, and investment goals because we believe that this leads to the best outcomes.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.