Estate-Tax Drop May Be Linked to Rise in Giving

According to the Internal Revenue Service, the number of Americans filing returns for estate taxes has dropped by more than a third since 2004, reports The Wall Street Journal. Taxes collected from estates worth at least $20-million fell to $29-billion in 2005, from $32-billion in 2000.

The explanations? Tax cuts passed during the Bush administration account for some of the change. But tax experts say more wealthy people are also seeking advice from financial advisers on how to minimize their estate taxes, including through charitable giving.

The IRS states that total charitable deductions from estate-tax returns increased to $19.6-billion in 2005, up from $16-billion in 2000. For those required to pay estate taxes, an even larger gain in charitable giving is seen, to $13.5-billion in 2005, up from $9.8-billion in 2000.

Read The Chronicle of Philanthropy’s coverage on estate taxes.

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