IRA Charitable Rollover

Kate M. H. Kilberg (Sutherland Asbill & Brennan LLP) has recently published her article entitled What Estate Planners Should Know About the IRA Charitable Rollover, Prob. & Prop., May/June 2006, at 12.

Here is the conclusion of her article:

The IRA charitable rollover currently enjoys widespread bipartisan support.  Indeed, the IRA charitable rollover has received more legislative attention in the 109th Congress than in any prior Congress, which bodes well for ultimate passage given that both the Senate and the House have passed one or more versions of the charitable rollover in prior years.  If the IRA charitable rollover is enacted as part of any of the bills currently being considered (or at some time in the future), estate planners and their clients will gain a new mechanism for tax-advantaged charitable giving.  Donors will be able to make lifetime gifts to charity of IRD assets, removing these potentially problematic assets from their gross estates.  Further, using IRD assets for lifetime giving will allow donors to retain income-tax-neutral assets in their estates, which, under current law, can be transferred, with the accompanying step-up in basis (if the assets are appreciated assets), at death.