Gifts That Pay You Income

Charitable Gift Annuities (CGAs) are a great way to make a lasting difference for ministries while receiving tax-favorable income for you, your spouse and your children. Many supporters prefer charitable gift annuities because of their attractive payout rates and their significant impact.

Charitable Gift Annuities

Charitable Gift Annuities (CGAs) are a great way to make a lasting difference for ministries while receiving tax-favorable income for you, your spouse and your children. Many supporters prefer charitable gift annuities because of their attractive payout rates and their significant impact.

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Charitable Remainder Trusts

Income for life for you and your family while reducing your taxes. By using assets or cash to fund the trust, you receive income and an income tax credit the year in which you transfer your assets. The remaining portion of the trust, after all payments have been made, comes to you.

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Navigating the 2026 Tax Cliff: Proactive Estate Planning

On December 31, 2025, many provisions of the Tax Cuts and Jobs Act (TCJA) are scheduled to expire. For Tucson families and business owners, this "sunset" represents a significant reduction in estate tax exemptions and a return to higher individual tax brackets. At GIS, we focus on technical advocacy to protect your assets before this window closes.

Key Changes: What Sunsets in 2026?

The 2026 shift is not a new tax; it is a return to previous, more restrictive levels. The primary impacts include:

Estate Tax Exemption Reduction: The current federal estate and gift tax exemption (currently over $13 million per individual) is projected to be cut by approximately 50%.
Individual Rate Increases: The top individual income tax rate is scheduled to revert from 37% to 39.6%.
Standard Deduction Changes: The standard deduction will decrease significantly, potentially pushing more Arizona taxpayers into itemization.

Strategic Response for High-Net-Worth Estates

Partners Doug McClure and Jay Clifford coordinate with your legal team to evaluate the following "Pre-Sunset" strategies:

Accelerated Gifting: Utilizing the current high exemption levels to move assets out of your taxable estate before the 2026 reduction.
Trust Architecture: Implementing Spousal Lifetime Access Trusts (SLATs) or Grantor Retained Annuity Trusts (GRATs) to freeze asset values.
Charitable Integration: Using Charitable Gift Annuities (CGAs) to offset increased income tax rates while fulfilling philanthropic goals.

The "Use It or Lose It" Rule

The IRS has clarified that individuals who take advantage of the current higher gift tax exemption will not be penalized when the exemption drops in 2026. This creates a definitive "use it or lose it" scenario for families with estates exceeding $7 million.

Why This Matters for Tucson Business Owners

For those owning land or businesses in Pima County, the 2026 cliff could create significant liquidity issues for heirs. Without proactive planning, a larger portion of a family business or property may have to be liquidated to cover estate tax liabilities.

Estate Planning

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Move from Uncertainty to Financial Clarity

Complex financial decisions benefit from experienced and thoughtful execution Schedule a brief date and time to discuss your goals and how we will help.