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  • 1.  Irrevocable Gift & Cash Payments

    Posted 06-27-2024 04:46 PM

    Hello all, 

    We have an irrevocable intent signed by a donor in 2011. The donor has asked to satisfy the gift through cash in his lifetime. Some questions I'd love feedback on:

    -Can the donor count cash against an irrevocable intent or must that be satisfied in a deferred payment?

    -What legal considerations would we need to explore in adjusting this irrevocable intent (we have a signed intent but not the trust documentation)?

    -Can the donor request past gifts (from previous FYs already reported as gift income and tax receipted) to reduce the planned gift?

    -Can gifts from the donor's family foundation (previous gifts or future) be applied to the individual's planned gift?

    -Can future cash gifts reduce the PG expectancy if entered as beqeust payments and not counted as cash gifts? Are those receipted to the individual?

    Thank you!



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    Jayme Fancher
    San Diego State University
    jfancher@sdsu.edu
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  • 2.  RE: Irrevocable Gift & Cash Payments

    Posted 06-27-2024 05:38 PM
    What you describe sounds like a bequest expectancy. Typically, those are revocable. Regardless, it is not unusual for a donor to decide to reduce their bequest commitment with current gifts.

    But that will also require the donor to rewrite their will if this was not anticipated.

    And if they want to "use" gifts made prior to 2011 then the will should reflect those gifts and call for a smaller amount beginning in 2011.

    But there is nothing wrong with any of this and outright gifts are fine.  But we may not have all the information available to make an informed decision.

    John

    John H. Taylor
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard





  • 3.  RE: Irrevocable Gift & Cash Payments

    Posted 06-27-2024 07:26 PM
    I see I overlooked a couple of your questions!

    A private foundation cannot satisfy a personal binding commitment. That is considered self dealing.

    And any current gifts are counted as current gifts - although treated much like a pledge payment. For CASE VSE they count in the year they are made.

    John

    John H. Taylor
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard



    Original Message


  • 4.  RE: Irrevocable Gift & Cash Payments

    Posted 07-01-2024 02:27 PM

    Thank you, as always :) I think we have a way forward with your feedback.



    ------------------------------
    Jayme Fancher
    San Diego State University
    jfancher@sdsu.edu
    ------------------------------

    Original Message


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