Faith, Hvoepe, & Lo Life Insurance
Retirement Plan Assets
Life Insurance is both easy to give and receive. The donor simply names the organization as beneficiary and owner; he or she can make a marvelous gift without disturbing other assets and without loss of income.
Retirement accounts are often exposed to income taxes and estate taxes at a combined marginal rate that could rise to 65 percent on large, taxable estates. Yet many of these taxes can be avoided or reduced through a carefully planned charitable gift. By donating retirement assets, those funds avoid estate and income taxes, and you can be certain that 100 percent of your retirement funds support your philanthropic objectives.
The donor can provide a gift to the organization through their will. The donor can choose from a specific bequest (“my grandfather’s clock, “my savings account” etc.) or a general bequest (usually cash).
The donor can choose a charitable way to pass assets to their heirs. The donor can contribute cash, securities, or other property to a trust. The trust makes fixed annual payments to the organization for a specific period of years. When the trust ends, the remaining principal goes to his or her heirs. The donor qualifies for a gift tax deduction and all appreciation that takes place in the trust goes tax free to his or her heirs.
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Published on Jul 7, 2009