 MAGALY CAJIGAS PHOTO The Story of Vivian - IRA to Charity: Increasing Tax Savings by Contributing the Right Asset
Vivian, 77, is a widow with two children in their early 50s. Her major assets consist of her residence, securities, and an IRA. She has given faithfully to The Community Foundation for Greater New Haven for years and, although she could possibly give more now, she decides to defer a larger charitable gift to the end of her life. She wants each of her children to receive 40% of her estate assets and for 20% to go to a charity. Which of her assets should go to her children and which to charity?
Vivian should name The Community Foundation for Greater New Haven as the beneficiary of the IRA and give other assets, such as appreciated securities, to her children. The IRA funds will not be subject to income tax - like they would be for her children - because we are tax exempt. For a more detailed examination of Vivian's scenario, request our complimentary guide. |
