Charitable Giving Information

Archive for March, 2008

Charitable Trusts Foundations

Question: we are running a school under charitable trust we want want some aid for construction of school builduing wher

financial aid for construction of building where to approach rockfeller foundations or kennedy foundations help us the school is in tanjore tamilnadu india

Answer: Lions Clubs are world wide. contact them.check theweb lions clubs look for club locator.. We send a lot of money to India. for sight preservation,, Many Lions clubs in Canada have members from your country , look them up,,

Peterson-Pew Commission on Budget Reform -- "Red Ink Rising" release

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Public Charitable Trust Registration

Company is a separate legal entity which is registered under the companies act. Every country is having different procedure of registration. Company registration in India is registered under Companies act 1956. Company registration in India required certain procedure to be followed. New company registration in India is always advisable as it will legally benefit organization. Incorporation of Company is yet another important area of concern. The Companies Act of 1956 sets down rules for the establishment of both public and private companies. The most commonly used corporate form is the limited company, unlimited companies being relatively uncommon. Company registration India provides new company registrations services to ensure that new company registration in India is top solution for all services.

A company is formed by registering Articles of Association with the State Registrar of Companies of the state in which the main office is to be located. There are companies and websites those provide information about Company Registration Services (STPI Registration, EOQ Registration, Taxation and Licensing Services, Vat registration and IEC export-import code) for easy company registration in India. They offer services like limited company registration, online company registration, foreign company registration and new company registration services in India. They provide proper guidance and information about the company registration services and new company formation, company incorporation and private limited company in India and much more. Company registration services in India not simply offer a registration service, but also provide you with advice and support for your business to flourish as long as you need it.

Online company registration is a new aspect of Company registration in India that is also easy and comfortable. The online facilities to get the company registration process, form and registration of company name make person comfortable. The online company registration process is very fast, cheap and easy and within law. The online service also provides help and advice on starting business development, corporate recovery, and financial planning regarding the company.

A Non Governmental Organization (NGO) is known to be an association of a body of individuals. An association of persons with non-profit motive i.e. ngo formation can be done under some Indian Acts. NGO formation can be done as charitable trust, as a Society registered under the Societies Registration Act or as a Company licensed under section 25 of the Companies Act. Company registration provides NGO formation services also.

You can start trading as soon as you get your company registered, but you cannot charge or reclaim VAT until you have completed the VAT registration process and have been issued with a VAT registration number.

Company registration India provides hassle free online VAT registration.

Online VAT registration becomes necessary if you want to reclaim VAT.

Company registration India gives you easy and fast online VAT registration.

About the Author:

Chaman Goyal is the author of “Company registration in India”.Get complete details about company registration in india ,ngo formation, online vat registration, new company registration in india, comapny incorporation, company formation.

Article Source: ArticlesBase.com – Company Registration India:- Assistance to get Your Company Registered

HOPE A PUBLIC CHARITABLE TRUST

Charitable Trust Set Up

Question: Beneficiary Deduction for Trust Attorney Fee on K-1 ?

Living Trust was set up a month before trustees death. Filing 1041 (dividend) income $5000 , charitable deduction $2000 attorney fee $7000. Net $ (4000). Can I (Sucessor Trustee) distribute the “loss” to beneficiary? How? Thanks!

Answer: Wow, the will said to give money to charity? That's nice. (If it's not mentioned in the trust document, you can't do it.)

If this is the LAST year of the trust, you can pass the excess loss through on the K-1 using line 11, code A. It then becomes a pretty worthless deduction for the beneficiary.

FisherFolks Charitable Dispensary Trust

Tax Planning Strategies For Corporations

Question: Form a corporation or doing business as in Calif. for best tax strategy?

If living in CA, and one is making an income of over 100,000 a year on a 1099, what is the best plan for ease of taxation in consideration of the new, soon to be new and current tax laws.

Answer: Do not form a corporation to avoid paying taxes. California taxes you a minimum of $800 a year for even having the corporation.

The IRS is cracking down on people trying to use s-corps to try and avoid paying fica/mc taxes (eg, all income from single member s-corps will soon be subject to se taxes).

An Intro To Creative Asset Protection Planning

Tax Planning Client Letter

Irrevocable Life Insurance Trusts (ILITs) are planning tools used to keep life insurance proceeds outside of the taxable estate.

For example, if a married couple has an estate of 6 million, they can pass 4 million to the next generation with no tax if they set up the proper trust arrangement to take advantage of the maximum lifetime unified credits. That leaves 2 million still subject to tax under the current law.

The logical thing to do is to purchase a survivorship life insurance policy for the projected tax. However, a policy purchased in the manner most people are familiar with, the problem is not solved; it is compounded.

If the couple has any “incidences of ownership” in the policy, it will be included in the estate. The purchase of a one million dollar policy increases the estate to 7 million. Four million passes tax-free, but now the taxable estate is 3 million. This increases the tax by some $225,000.

Enter the Irrevocable Life Insurance Trust.

Attorneys draft Irrevocable Life Insurance Trusts. The trust will apply for its own Federal Tax ID number. The trust will then apply for the survivorship life insurance policy. It will be the applicant, owner and beneficiary of the policy. Typical wording is “The John and Mary Smith Irrevocable Life Insurance Trust dated April 5, 2007, JPMorgan Chase Bank, trustee.”

In this example, since neither John nor Mary has any “incidence of ownership” in the policy, it will not be part of their taxable estate.

The Owner and Beneficiary

As opposed to using an ILIT, I have worked with a few cases where the only child or children are the owner and beneficiary. This may work. However, each year the parents gift the money to pay the premium, there is no assurance that the money will be used to pay the premium. Furthermore, the children, as owners, have access to the cash values. An ILIT has much more assurance.

I have seen the trustee be a child, the couple’s attorney, accountant or a long-time family friend. All of these will work, but an un-biased third party, such as a bank, is much better. If an individual is the trustee, name a bank as the successor trustee. Banks don’t die.

The Crummey Letter

Typically, the life insurance premiums are paid by the parents in the form of annual gifts to the Irrevocable Life Insurance Trust. Currently (2007) a person can give up to $12,000 each year to as many people as they want without paying gift tax or having the amount subtracted from their lifetime exclusion. However, these gifts must be “present interest” gifts, which mean the recipient must have immediate rights to the gift.

Gifts to an ILIT, for paying premiums on a life insurance policy owned by the ILIT, are not “present interest” gifts. A “Crummey” letter qualifies the gift as a “present interest” gift. The letter is not crummy or poorly written; the letter takes its name from a court case initiated in 1968 by Clifford Crummey, who was trying to do this very same thing: make annual gifts present interest gifts. Ultimately, the outcome of the case required the use of a letter, now known as the “Crummey” letter.

A letter is sent every year to each of the beneficiaries of the ILIT. It simply states that a gift has been made to the ILIT and they can withdraw it if they want within a certain timeframe, usually 30 or 60 days. If they don’t exercise this right, the gift becomes a present interest gift.

Obviously, there is an “understanding” between the parents and children to ignore these letters, as it is a part of the overall estate plan. The annual gifts and the ensuing yearly Crummey letters do not have to go to children with a legal capacity, such as age 18. I have seen letters written to 4-month-old babies. In this case, even though the baby was not able to read the letter or understand the estate planning rationale behind it, it did not exercise its right to the gift. Phew, another legal bullet dodged.

As you can see, it is very important to arrange for the annual drafting of these Crummey letters. Some banks’ trust departments used to provide this service if they were the trustee of the trust. This was just a courtesy as they never would see or manage any of the life insurance proceeds.

The best bet is to have your attorney do the letters. I have one client whose law firm (under a written set of instructions) has the premium notice from the life insurance company sent to their firm, prepare and send the Crummey letters and then pay the premium. All the client has to do is open a letter each year from the law firm indicating a premium is due and send them a check. Other than that, they don’t have to lift a finger. A nice service.

If you have an estate that will be subject to estate taxes and your advisors suggest a life insurance policy to pay the tax at a discount, make sure you evaluate the use of an Irrevocable Life Insurance Trust.

About the Author:

Robert D. Cavanaugh, CLU is a 36-year financial and estate planning veteran and author of the free newsletter, “The Estate Preservation Advisor”. For cutting-edge, easy-to-understand financial planning resources and techniques to increase your income, reduce taxes and preserve your estate, go to http://theestatepreservationadvisor.com/rd/subscribe.htm

Article Source: ArticlesBase.com – Ilit – the Irrevocable Life Insurance Trust

Adam Bold – Back to Basics: Rebuilding Your Personal Wealth