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COVID-19: Estate Planning & Charitable Giving

Our community partner, The San Diego Community Foundation, recently published an excellent article on Estate Planning Issues During the COVID-19 Pandemic, written by guest blogger Nancy A. Spector, Certified Specialist, Estate Planning, Trust & Probate Law.

We hope this information is helpful as the CARES Act has implemented changes that may affect your estate and charitable giving.

Please consider Neighborhood Healthcare for a charitable gift before 12/31/2020, a Legacy Gift in your estate, or as a beneficiary for your retirement account, annuities, or life insurance policies.

Here are a few key provisions of the CARES Act that may affect you and your charitable goals:

Required Minimum Distributions (RMD) Suspended– The new law temporarily suspends the requirements for “required minimum distributions” for the 2020 tax year. This probably comes as a relief to many of you who would have had to withdraw from your retirement accounts. Many of our donors use their RMD to make a gift from their IRA. Despite the RMD suspension, remember that if you are 70 ½ or older, you can still make a gift from your IRA or name Neighborhood Healthcare as a beneficiary.

Why a Gift From Your IRA May Still Be a Good IdeaYour gift will be put to use today, allowing you to see the difference your donation is making. You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions. Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.

New Tax Incentives– The CARES Act expands charitable giving incentives and allows taxpayers who take the standard deduction to make up to $300 of charitable contributions to qualified charities this year. You might think that this is a small amount that won’t make a difference. But what if all of our donors gave “just” $300? Such support would have a huge impact on those we serve. For those who do itemize their deductions, the new law allows for cash contributions to qualified charities such as Neighborhood Healthcare to be deducted up to 100% of your adjusted gross income for the 2020 calendar year.

Your Charitable Goals

We are deeply grateful for your continued generosity and support. Please contact Philanthropy at to discuss how your gift can help further our mission.

The information on this website is not legal or tax advice. Please consult an attorney or tax advisor for advice. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.