In the News

Mike Cumming Quoted in Bankrate.com Article on Scholarship Endowment

Explains that Tax Benefits Differ Depending on Whether One Gifts During Life or At Death

July 9, 2013

Michael G. Cumming, Bloomfield Hills-based member who leads Dykema’s Tax Practice Group, is quoted in an article, “Benefits of giving a scholarship endowment,” that appears in a recent edition of Bankrate.com, a leading aggregator of financial rate information on the web.

In the article, Cumming explains that there can be significant tax benefit differences between making a cash gift during life versus doing so at death (via a trust or will). He explains that while giving at death provides an unlimited charitable deduction, if one’s estate falls under the current $5.25 million exemption, one might explore the possibility of gifting during life, so that an immediate deduction can be obtained.

Cumming notes, “The right way to endow a scholarship for tax purposes is [best] determined ‘case by case,’ depending on your adjusted gross income and your federal gross estate.”

To read this article in its entirety, click here.