Gifts of Partnership Interests
How It Works
- You convey a partnership interest to Exeter.
- Depending on the circumstances, Exeter may choose to hold the partnership interest or to sell it quickly. Any partnership distributions or sales proceeds will be applied to the purposes you designate.
- You receive gift credit and an immediate income tax deduction for the appraised value of the donated partnership interest, net of any liabilities.
- Under certain conditions, you may be able to use a partnership interest to fund a life-income arrangement, such as a Unitrust.
- You can have the satisfaction of making a significant gift that benefits both you and Exeter during your lifetime.
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Please contact us so that we can assist you through every step of the process.
Questions and Answers
It is important that you contact us so that we can assist you with transfer instructions. If you own securities in a brokerage account, we can help you set up an electronic transfer of the shares to our brokerage account. If you possess actual stock certificates, we can tell you how to sign the certificates over to us and fill out a stock power form.
Assuming you are giving long-term (owned for 12 months or more) appreciated securities, you will receive a charitable income tax deduction equal to the fair market value of the shares. For common stock this is typically the mean value on the date that we take control of the shares you give. You will pay no capital gains tax. Gifts of stocks are deductible up to 30% of your adjusted gross income the year you make your gift. Any excess amount can be rolled over into the next tax year, for up to 5 additional tax years if you need it.
It is generally our policy to liquidate any donated stock shares very soon after receiving them, so that we can use the cash proceeds for the purpose you designate.
In many cases yes, and considerable tax benefits can result. However, giving closely held stock is more complicated than giving common stock. We stand ready to assist you with your gift intention. Our prerequisite to giving closely held stock is that the business or the shares have had a recent qualified appraisal. Please contact us so that we can walk you through the process.