Say their assets, net of pension, are as follows:
- Residence: $550,000 including land. Was purchased for $225,000. No mortgage.
- Vacation home: $205,000. Purchased for $86,000 Mortgage balance: $18,000.
- Portfolio: $1,750,000 with basis of 50%
- IRA $500,000
- Collection of antique engineering tools worth $100,000 with low basis
Say they are living within their income, but are concerned that with low interest rates and inflation, they will soon have too little income to cover expenses.
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This case study is from GS 849: Charitable Planning, part of the CAP program for which, in my more lucid moments, I am responsible. The ideal audience, sitting at small tables to discuss the case, consists of both advisors (tax, legal, financial), and also nonprofit gift planners. The perspectives are so often misaligned that it is through the conversation across the disciplines that real learning takes place. We get that going through local study groups. What we are finding is that these study groups are morphing into action groups. If you are a nonprofit with a gift planning advisory committee, such a study group can get them into action on your behalf.