It's never a bad idea to review date of delivery rules for charitable gifts. These rules determine the date that a gift was made and any tax consequences of the gift. Here are the general rules for determining date of delivery for some types of property when given as a gift.
For tax purposes, a charitable gift is deemed made on the day the gift was delivered to the charity. This has important implications in tax law as it determines what laws apply.
If you are planning on giving to charity now or even during the holiday season, you need to know when your gifts will be considered delivered.
In 2014, the Wills, Trusts & Estates Prof Blog published a list of delivery dates for common types of gifts in an article titled "Date of Delivery for Gifts." In summation, here are the “dates of delivery” for commonly given assets:
- Securities – The day when hand-delivered or mailed via the U.S. Postal Service.
- Mutual Fund Shares - The day when the fund manager transfers the shares to the charity.
- Checks - The day they are sent in the mail, as long as they are not post-dated.
- Personal Property - The day the property and title are received.
- Real Estate - The day the deed is received or when it is registered, if required by local law.
- Credit Cards - The day a bank transfers the money to the charity.
NerdWallet takes this information a step further by unboxing the 2020 gift tax rates. Essentially this details who pays (the giver or recipient) when a gift has been given. If giving a gift, first consider whether it will be once-in-a-lifetime or on multiple instances over many years.
To ensure your generosity complies with the tax law as falling safely within tax year 2020, or if you have any other questions about charitable giving, contact an experienced estate attorney sooner rather than later.