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Retirement Plan – Give Us Your Most Tax-burdened
Asset
What is a gift of retirement plan?
Qualified Retirement Plans may be the most tax-burdened
assets you can own. If you die before you have taken all of your distributions
from your IRA, 401(k), Keogh, SEP or other qualified plan, the balance
remaining in your plan can be subject to multiple taxes that can claim
up to 75% of its value for those in higher estate tax brackets.
Retirement plan assets may be subject to BOTH income
and estate tax when you die. You can roll over your retirement plan at
your death to your surviving spouse without incurring any taxes. When
your surviving spouse dies, however, any remaining plan assets can become
subject to multiple levels of taxation, including Federal income tax,
Federal estate tax (partially offset by an income tax deduction) and
generation-skipping transfer tax (GST) if the distribution is made to
a skip person, such as a grandchild.
This can create a scenario where as little as 25 cents
on the dollar remains for your heirs. Why give your hard-earned retirement
assets to the government when you can give them to Eckerd College instead?
Here's how:
- If you have no spouse, or your spouse is already
adequately provided for, just fill out a “Change of Beneficiary
Form” naming Eckerd College as the primary beneficiary
of your plan. Give other assets to your heirs. Your plan assets will
go tax-free to Eckerd College and your heirs will receive
their share of your estate without the burden of extra taxes. If your
spouse is living, state law may require that he or she sign a "Spousal
Waiver of Benefits."
- Set up a Charitable Remainder Trust in your will
into which you transfer any residual in your retirement plan at your
death, naming your surviving spouse or children as income beneficiaries
for life or a term of years and Eckerd College as the
charitable remainder beneficiary. This approach will avoid all income
tax liability and generate a partial estate tax deduction.
WARNING: Consult your legal and tax advisors before
making any material decisions based on this information.
Send me a Personal Illustration!
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For more information
E-mail
us, complete the Personal Illustration
form, or call us at (727) 864-8229 so that we can assist
you.
Judi Schraer
Director of Gift Planning
Eckerd College
4200 54th Avenue South
St. Petersburg, FL 33711
(727) 864-8229
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