Text Resize
Print This
Email This
Request Illustration
Download Brochure

A Bequest to Save Taxes

A Bequest to Save Taxes

Thomas was a widower who had a great love for our organization. As an individual who had directly benefited from our work, Thomas wanted to thank us with a gift from his estate.

Thomas told his attorney that he wished to make a bequest to his favorite charity. Thomas' estate included some stocks, real estate and an IRA. Thomas' attorney recommended that he give the appreciated stock and real estate to his children and leave his IRA to charity.

Thomas: My attorney told me that if I gave the stock and real estate to my children, these assets would receive a step-up in basis at my death. My children could then sell them without paying tax. However, if I gave my children my IRA, the IRA would be subject to estate and income tax. After paying all of these taxes, very little would be left for my family. By giving the IRA to this organization, I could make a nice gift and avoid any additional tax for my estate and children.

Thomas contacted his IRA custodian to obtain a beneficiary designation form. He filled out the form and designated our organization as the 100% recipient of his IRA account. Thomas' attorney then specified in Thomas' will the bequest of his other assets to his children.

Thomas: I was so impressed with my attorney's advice that I named him executor of my will!

Thomas called and notified us of his bequest. Thomas was pleased that because our organization was a tax exempt institution, it would receive the full amount of the IRA value when he passed away, creating a legacy for the future.

You also may want to make it easy and convenient to have a bequest included in your will. The language link below shows how a bequest can very easily be included in your will.

You might find it helpful to print this page and the bequest language. Please feel free to give this information to your attorney. If he or she has any questions, please contact us.

Click Here to review sample bequest language.

*Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since your benefits may be different, you may want to click here to view a color example of your benefits.


Print This
Email This
Request Illustration
Download Brochure
scriptsknown

Gift Options

What to Give
Find out what to give and learn about the best assets to make a planned gift.
How To Give
Giving to our cause can be done either directly or through a gift model that can provide tax benefits and even income.
Planned Gifts Cacluator
These presentations show the income and tax benefits for you.
Donor Stories
Learn how others have made an impact through their acts of giving to our organization and others. Explore the many benefits of charitable gift planning.

Create Your Plan

Learn About Wills and Trusts
Help plan for your family and loved ones with a will or living trust.
Bequest Language
View some helpful language commonly used on bequests.
Request an Estate Planning Guide
We would like to send you a FREE Estate Planning Guide.

News

Personal Planner
Ten Reasons to Update Your Estate Plan
You have completed a will and perhaps a revocable living trust. Your durable power of attorney for healthcare and a living will are accompanied by a HIPAA release. All of your records are safely in...
Savvy Living
Social Security Options for Divorced Spouses
As a divorced woman, am I entitled to my ex-husband's Social Security benefits? I was married for 14 years and would like to know how this works. Yes, you may be eligible for divorced spouse Social...
Washington news
Senate Tax Cuts and Jobs Act
On November 9, the Senate Finance Committee released its version of the Tax Cuts and Jobs Act. The Senate Finance Committee press release stated the bill would provide "fiscally responsible...

For Advisors

We have a complete tax update service for CPAs, attorneys, CLUs, CFPs, ChFCs, trust officers and other professional friends. The GiftLaw services are made available to all advisors as a free service. We are available to assist in helping you provide clients with clear and understandable gift illustrations.