Memorial Day is a time to honor those who gave their lives in military service. It’s a moment of reflection rooted in gratitude and remembrance. That same spirit of remembrance can inspire how we honor the people who have shaped our own lives. A charitable gift in honor or memory of someone special is a meaningful way to carry their values forward.
Thoughtful Giving, Practical Benefits
While the motivation is personal, memorial gifts can also be structured in ways that make them effective from a tax perspective.
Even when a gift is made in someone else’s name, the financial benefits remain with you. In that sense, a memorial gift can both honor someone important to you and serve as a thoughtful, tax-efficient part of your overall giving strategy.
If you itemize, you may claim the allowable tax benefit for your generosity. For itemizers, only total annual gift amounts above 0.5% of your adjusted gross income (AGI) qualify for a deduction.
Simple Ways to Give in Memoriam
There are many ways to structure a memorial gift. Here are three common approaches that combine meaning with financial efficiency:
- Cash or Check: A simple, immediate way to pay tribute and qualify for a tax deduction if you itemize. Nonitemizers can also claim an above-the-line deduction of up to $1,000 for cash contributions to qualified charities.
- Appreciated Stock: Donating securities held for more than a year allows you to avoid capital gains tax while still claiming a deduction for the fair market value (subject to limitations), making it a highly efficient way to fund a larger memorial gift.
A Lasting Tribute
This May, as our nation pauses to remember those who died in military service, consider how you might also honor the personal heroes who have shaped your life. A memorial gift not only recognizes someone’s life but also extends their impact in a way that reflects what mattered most to them. When structured thoughtfully, it can also play a meaningful role in your broader financial planning—a single act of generosity that carries both personal significance and practical value.
We are always deeply moved to receive these meaningful tributes. If you would like to discuss the best ways to structure a memorial gift, contact us today. We would be honored to help.
