Planned Giving


FREE Estate Planning Kit

Planned Giving

Forward this article to a friend   Print version   Increase font size  Decrease font size 

Make Your IRA Go Further After Your Lifetime

Despite your good intentions to help the people and organizations you hold dear, unforeseen taxes could cut your generosity short. Your IRA is one of those tricky assets for which you should plan carefully.

How Taxes Affect Your IRA
When you leave your IRA to loved ones, distributions will be subject to income taxes, which can reach a top federal rate of 35 percent. If your estate is exposed to estate taxes, another tax of up to 45 percent will be taken away, leaving much less of an inheritance than you had planned.

A better alternative for family members is to pass on income tax–free inheritances, such as real estate, cash and life insurance. Then, use your IRA assets to help your favorite charitable causes. Two tax-smart charitable solutions are the charitable estate gift and charitable remainder trust.

Charitable Estate Gift
You can designate us as the beneficiary of all or a percentage of your IRA. We will pay no income tax, and the assets will pass to us estate tax–free.

Charitable Remainder Trust
This trust benefits our organization and your loved ones. It can first make payments to one or more of your loved ones for life or for a term of years, and then, thereafter, the balance goes toward our mission. We receive the remainder free of income and estate taxes.

To learn more about how you can put your IRA to good use, contact Steve Goebel, CFRE at 309-281-4392 or, or your estate planning or tax attorney.

Copyright © The Stelter Company, All rights reserved.

The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.

Meet Our Staff   |  Contact Us   |   Planned Giving Home