According to a recent article in Private Wealth, “Rich College Donors’ Tax Break Suddenly in Danger,” the idea is part of a tax proposal offered by U.S. Representative Tom Reed, a western New York Republican and vice chair of President-elect Donald Trump’s transition team.
The plan would apply to the roughly 100 colleges with endowments exceeding $1 billion. Reed wants to make sure that those institutions offer steep discounts to families with annual incomes of $24,000 to $145,000.
President-elect Trump has not endorsed this proposal, but if it passes, wealthy donors may want to revisit their estate planning and any planned gifts to these colleges to make sure that they are in compliance and gifts will be fully tax-deductible.
