Here's the story of a giving family. They want to contribute $10,000 to their favorite charity in each of the next three years. But because the Tax Cuts and Jobs Act (Public Law No. 115-97), passed on December 22, 2017, doubles the standard deduction and does away with other deductions, they may no longer see an economic benefit from doing so.
What this hypothetical family can do instead, says Bill Sutton, Strategist, Family and Philanthropy Advisory, UBS, is bundle those donations into a single $30,000 gift in one year—allowing them to surpass the expanded standard amount and maximize tax savings through itemization.
"We have some folks that are even calling it 'Brady Bunching'," Sutton joked. "Whether it's Marcia, Greg, Jan, the whole bunch, how that disparate group came together—well, you bring them together in one year."
Sutton and Terence Condren, Senior Wealth Strategist, UBS, joined On-Air Host Anthony Pastore for a four-part interview on the impact of the new legislation on charitable giving—the first installment in our "Tax reform and you" podcast series.