Gifts that plan for the future

Gifts of IRAs, 401(k)s and other Retirement Assets

Your Individual Retirement Account (IRA) and other retirement assets (pension, profit sharing plan, etc.) grows tax free until you begin withdrawing the income.  This is a tax advantage that has probably allowed you to accrue substantial assets.  Because the withdrawal of income from retirement plans is subject to income tax, however, even when left to your surviving spouse or other heirs, these assets often result in large income tax liabilities.  This may result in tax planning and financial issues at your death. 

If you are contemplating a charitable bequest, this is often the best asset for you to use.  All taxes, both income taxes and estate taxes, are avoided when paid to charity.  If you are considering a charitable trust, retirement assets can be transferred to a charitable trust without incurring income tax liability, increasing the amount of income that is available to the trust beneficiaries.

Outright gifts of IRAs and Retirement Assets

To make an outright gift, you will need to make a withdrawal from your IRA or other retirement plan.  The charitable deduction will, in most instances, off-set the income tax liability you incur upon withdrawal.

Gifts at Death

Please consider directing the executor of your estate to use these assets to fund your bequest or other charitable gift.

Contingency Plans

Please consider adding Child and Family Services  as a contingent beneficiary of your IRA or retirement plan. By doing so, you will give your surviving spouse and other heirs the flexibility to disclaim some or all of their inheritance of this asset. Contact your plan administrator for a beneficiary designation form.