Gifts of Retirement Assets
(Complete gift description)

Did you know that your retirement plan assets will be taxed heavily when you die?

When you plan your estate, it may seem natural to designate a family member as your successor beneficiary, and use other assets to make a charitable gift. But using retirement assets to make your donation and leaving other assets to your heirs often enables you to give more to your heirs.

Why is this an efficient way to give?

Since we are a non-profit organization, we won't pay income tax on the distribution (nor will the gift be subject to estate tax). The entire amount comes to us, and your heirs will benefit from a reduced estate tax burden.

Can I use retirement assets to fund a charitable life income arrangement?

You can certainly do so through your estate; however you are strongly encouraged to seek competent counsel in this area if this is a consideration. If you are considering a lifetime transfer of retirement assets to such a plan, you will need to withdraw your assets, pay the required taxes, and then contribute them to a life income arrangement. Of course, you will receive a charitable deduction that will, in part, offset the taxes you owe.

What other points should I keep in mind?

Be sure to direct the gift to Wells your plan's beneficiary designation form – rather than through your will. If you fail to do so, the assets will be included in your taxable estate

Don't use the balance in your retirement account to satisfy a specific dollar-amount bequest already in your will. Your estate will be treated as having received taxable income in the amount of the bequest paid by the retirement plan assets.

You may make Wells a partial beneficiary of your plan and direct the balance to your heirs.

How do I make a gift of my retirement account assets?

Be sure to get the advice of your plan administrator and an attorney. Call us to ensure that your plans are fulfilled.

For more information

Email us, complete the personal illustration form, or call us at 315-364-3443 so that we can assist you through every step of the process.

Pettibone House
Aurora, NY 13026
315-364-3443 | Fax: 315-364-3362
E-mail: development@wells.edu

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