Bequest of retirement assets can be left to favorite charities.
LEARN HOW YOUR PLANNED GIFT CAN HELP THE AMERICAN LEGION
*Kelly: "We both had a lot of money in our IRAs, more than we could ever use. We wondered if we could pass this on to our children."
Michael: "Our adviser explained the problem with giving our retirement savings to our family – he said a majority of the gift would be taxed. We didn't want our children paying any more in taxes than they already do."
To alleviate their concerns, Michael and Kelly's adviser created a plan that stipulated their stocks and home would go to the children. He then recommended that a bequest of the retirement assets be left to their favorite charities. These could then receive all the assets from Michael and Kelly's IRAs tax-free, allowing them to use the funds to further their missions.
Michael: "It was easy to make bequests from our IRAs to our favorite charities. We filled out the online forms on our custodian's website that permitted us to allocate percentage shares to charitable causes."
Kelly: "This plan met all of our goals. We liked the fact that our children could immediately sell the house and stocks with little or no tax due. We were also happy to help some worthy organizations continue their good work.”
Is a gift of an IRA to a nonprofit right for you? An IRA charitable rollover is a way to make a gift to support a good cause from your IRA. Your retirement plan is probably among your most valuable assets, but it may not be the best to leave to children. If you have a taxable estate, your IRA or 401(k) plan will be subject to the estate tax, and any distributions to children will also be subject to income tax. That is why many tax planners suggest leaving retirement plans to a nonprofit organization. This gift will produce an estate tax deduction, and the nonprofit will not have to pay the income tax on the gift.
If you are in the process of determining which assets are "good" to leave to a nonprofit and which might be "good" to leave to family, please give us a call. We can help you with estate planning strategies that will reduce your taxes and allow you to maximize the gifts you leave to your family and a nonprofit.
*Please note: The information above is representative of a typical donor and may or may not be an actual donor to our organization.
The American Legion’s Fund Development program is a way of establishing your legacy of support for the organization while providing for your current financial needs. Learn more about the process, and the variety of charitable programs you can benefit, at legion.org/plannedgiving. Clicking on “Learn more” will bring up an “E-newsletter” button, where you can sign up for regular information from Planned Giving.
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