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What will you do with your unspent retirement savings?

What will you do with your unspent retirement savings?

Gene Dewey, University of Arizona '61, was a proud alumnus of Arizona Beta. In administering his estate, Gene wisely used unspent retirement savings in his IRA to make a significant gift to SigEp. Had he gifted his IRA to a member of his family a majority of the gift would have been taxed.

In making his bequest utilizing his retirement assets, Gene ensured that SigEp could then receive all the assets from his IRA tax-free, allowing SigEp to use the funds to further its mission of service to students.

Is a gift of an IRA to charity right for you?

Your retirement plan is probably among your most valuable assets. While the retirement asset is a great asset for you, it may not be the best asset to leave to children. If you have a taxable estate, your IRA or 401(k) plan will be subject to the estate tax, and any distributions to children will also be subject to income tax. That is why many tax planners suggest leaving retirement plans to charity. This gift will produce an estate tax deduction and the charity will not have to pay the income tax on the gift.

If you are in the process of determining which assets are "good" assets to leave to charity and which assets might be "good" to leave to family, please give us a call. We can help you with initial estate planning strategies that you can share with your advisor for further conversation.