Ways To Help

Providing gift from your estate

Have you considered, instead of gifting your retirement assets to a charity during your lifetime, you may designate the charity as the beneficiary of your retirement account. Under this option, the charity Рnot you Рwill be treated as receiving the distribution; therefore, neither you nor your estate will owe income taxes on the amount. While the amount will be included in your taxable estate, your estate will receive a deduction for the amount inherited by the charity, resulting in an offset of the estate taxes. Furthermore, because charities do not pay income taxes on the donations they receive, the distribution will avoid being taxed as income.