Regency Wealth Management

Capital gains taxes saved with Donor Advised Fund

Ramsey, NJ (Mar 11, 2016) — A charity-minded North Jersey couple will be able to save $200,000 in taxes this year thanks to a Donor Advised Fund set up for them by Regency Wealth Management. The fund accepts shares held in a private business, and will allow the couple to donate to a variety of charitable causes in the future.

The couple, who built their privately held company over a long period of time, was nearing a potential sale and decided to donate a portion of their ownership to charity. The business had grown significantly in value and now they were looking to step back, take their equity with them and do some good along the way.
Advice from Regency steered them towards implementing a Donor Advised Fund, the tax advantages of which will allow the couple to contribute appreciated assets directly to the registered charity and then recommend gifts to their favorite causes on their time frame.

“This is a fantastic tool to facilitate charitable planning,” Mr. Parker said. “A Donor Advised Fund has a lot of the same advantages as a private foundation, such as the ability to accept stock, ownership in a private company, or real estate, but without the same cumbersome legal and accounting requirements.”

“The Regency Wealth team is committed to helping clients meet their financial goals, whether those are personal or charitable. We help them implement plans that use their resources in the best possible way,” Mr. Parker said. “At the end of the day, this couple will be able to contribute more assets to the charities they choose which is not only a win for them, but a win for the charities, and the many people affected by their good work.  Down the road they can even involve their children in deciding where to give.”

Donor Advised Funds don’t have a high barrier to entry. Fidelity offers an option to contribute beginning with $5,000.

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