Date: 01/01/2012

The federal legislation that has allowed donors to make charitable gifts directly from IRA funds in recent years expired on December 31, 2011.  This legislation allowed persons over age 70 1/2 to distribute gifts directly to charities from an IRA up to $100,000 annually.  The distribution counted toward the required minimum distribution, but was not counted as income to the donor (nor as a tax-deductible gift). 

 

Keep in mind, however, that Congress allowed this legislation to expire at the end of 2009.  It was not until December of 2010 that Congress renewed the legislation retroactively for 2010 and extended it through 2011. 

 

Therefore, gift planners will have to stay tuned as many estate planning and tax planning rules remain unclear.  If the IRA gift option would be helpful for you, then it might be wise to delay taking any required minimum distributions from IRA funds to as late in 2012 as possible.