In Perspectives

It is that time of year when many people start to think about their charitable giving. This probably explains why I have received so many recent questions about the status of the Qualified IRA Charitable Distribution (QCD) rules that have been such a source of confusion over the last several years. You may remember this as the income tax provision that in past years has allowed a person over the age of 70-1/2 to make direct charitable gifts from their IRA without having the distribution appear as taxable income on their income tax return. This can provide significant income tax advantages for certain individuals.

Historically, QCDs have expired annually (or bi-annually) and often have not been extended until late in the next year, long after most people have executed their charitable giving. For many, this has resulted in higher than necessary income taxes and potentially higher Medicare premiums.

Unfortunately, we approach the end of this year with no more certainty about QCDs than we have had in previous years. The provisions have not been extended, even though the charitable lobbying continues. A bill has been introduced in the Senate designed to extend QCDs along with several other expired tax provisions for 2015 and 2016. I have read that the House of Representatives is considering their own bill to extend QCDs as well. However nothing has been passed and with the recent turmoil in the House, we are left to wonder, once again, if anything will happen before the end of the year.

Given the above, what is a person to do if they wish to make a direct gift to charity from their IRA? The best approach may be to wait as long as possible to see if we get some clarification on the issue. Some have chosen to go ahead and make direct charitable contributions from their IRA and hope any extension includes the ability to qualify gifts made throughout the year. Still others have decided not fight the system and have made their charitable gifts as ordinary tax deductible contributions. The right path for each person will depend on their individual circumstances and patience!

I wish we could provide more clarity on this important issue, but I can only say we will be watching it closely and will get the word out if that clarity develops. In the meantime, please feel free to call us if you need assistance with this, or any other wealth management question you may encounter.

Legacy Trust and Your Right to Financial Privacy

At Legacy Trust we have established policies and practices that respect the financial privacy of all individuals who use our trust company. We believe it is critical to comply with the laws and regulations designed to secure your financial privacy. Your relationship with us as our client is very important to us, and we want you to understand our policies and practices about handling your information.

This Policy applies to you – This Policy applies to our relationships with individual clients who inquire about or obtain products or services from us for personal, family and household purposes.

Strict security measures – We take the security of information very seriously. We have established security standards and procedures to prevent access to client information. We maintain physical, electronic and procedural safeguards to guard client information.

Limited employee access – We have established procedures to limit employee access to information to only those employees with a business reason for accessing such information. We educate our employees about the importance of confidentiality and client privacy. We take appropriate disciplinary measures to enforce employee responsibilities regarding client information.

Why we collect information – We collect information about you to:

  • accurately identify you;
  • protect and administer your records, accounts and funds;
  • help us design or improve our products and services;
  • understand your financial needs;
  • save you time when you apply for new products and services; offer you quality products and services; and comply with certain laws and regulations;

We collect information – We collect and maintain your personal information so that we can provide investment management and other services to you. The types and categories of information that we collect and maintain about you include:

  • Information we receive from you to open an account or provide investment advice or other services to you (such as your home address, social security number, telephone, financial information and investment objectives).
  • Information that we generate to service your account or from our transactions with you (such as account statements and other financial information).
  • Information on your transactions with nonaffiliated third parties.

We have established procedures so that the financial information we collect is accurate, current and complete. We are committed to work with you to promptly correct any inaccurate information.

Our selective sharing of information – In order for us to provide investment management and other services to you, we do disclose your personal information in very limited instances, which include:

  • Disclosures to nonaffiliated companies as permitted by law, including those who help us service your account (such as providing account information to brokers and custodians).
  • Other limited disclosures as permitted by law, for example, required reports to government entities.

We do not share your information with third parties for marketing purposes. We do not sell your information.

Former clients – If you end your relationship with us, we will continue to adhere to the privacy policies and practices described in this notice.


Important Information About Procedures For Opening A New Account

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

We apologize for any inconvenience this may cause; however, federal law prohibits us from waiving these requirements.

You are leaving the Legacy Trust website

Legacy Trust makes no representation concerning nor is it responsible for the quality, content, nature, or security of any hyperlinked site. This link is provided as a convenience and does not imply any investigation or endorsement of the site.


Do not send sensitive information over email. If you need to communicate sensitive information, please call us at 616.454.2852


The views expressed on Linkedin do not necessarily reflect the views of Legacy Trust