Preservation | Family Wealth Protection & Planning

This holiday weekend, you may have tackled your holiday shopping with deals from Black Friday, Small Business Saturday and Cyber Monday. Now, you may wish to join Giving Tuesday and add charitable giving to finish your holiday shopping! 

*This publication has been updated to reflect recent IRS guidance.

Although many aspects of the CARES Act focus on relief for small businesses and employees, there are several provisions that are relevant to estate planning.  These provisions may influence planning decisions this year and in the future, including those related to charitable giving and retirement plans.

The IRS has posted an Economic Impact Payment Information Center that addresses many frequently asked questions regarding the stimulus payments authorized by the CARES Act. However, like many things related to the act, there are remaining questions and gray areas not contemplated by the act or fully addressed at this time by the IRS. One of these questions is how to address the receipt of a payment for a deceased individual.

President Trump signed into law on Friday, March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act, to help individuals and businesses affected by COVID-19. This legislation has brought about sweeping changes meant to provide relief to individuals and businesses. As part of the CARES Act, certain changes were made with respect to tax benefits to incentivize charitable giving.

$300 Cash Contribution Deduction. Beginning in 2020 and each year thereafter (this is not limited to only 2020), individuals can take a $300 above-the-line deduction for cash contributions to charities, regardless of whether or not the individual itemizes deductions.