Many individuals who want to help others and give back through legacy giving to JFCS have decided that an estate gift of their IRA or other employee benefit plan is the best way to proceed.  Retirement plans are excellent preparation for retirement—they're sheltered from taxation and grow, tax free. But you might not need the full extent of those assets and, eventually, the "tax man" calls—in this case very loudly—unless you seize the opportunity to use unneeded retirement plan assets for your charitable estate gift to JFCS, at relatively little cost to your heirs.

You’ve Saved It, Don’t Lose Most of It to Taxes

Between income and estate taxes, it is startling how much of an IRA or other plan is diverted to taxes after death--often up to 70%. That means your heirs would receive only 30 cents on the dollar from your qualified plan. Since JFCS is tax-exempt, an estate gift of your IRA or other employee benefit plan is one of the very best ways to make a significant charitable gift at relatively little cost to your heirs.

Flexible Ways to Make Gifts from Your IRA or Retirement Plan

• Make an outright charitable gift of all of your full retirement fund at death by naming JFCS as beneficiary. This is done by completing a simple beneficiary designation form that does not necessitate a change in your will or other estate planning document.
• Name JFCS as a beneficiary of just a portion of your IRA or other qualified retirement funds. Following your death, that portion will come tax-free to JFCS, with the balance paid to your other beneficiaries according to the schedule you and they elect.
• Create a charitable remainder trust that receives the proceeds of your IRA after your death. Your spouse or children then receive tax-reduced payments from the trust, with the remaining principal eventually flowing to JFCS. Benefits to children may be greater than if you had simply left them your retirement funds as a lump sum. You would want to consult legal counsel to develop the formal trust agreement.

 Contact Ellen McCaslin, Director of the Permanent Endowment Fund, for more information.

Left Column Image: