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ASSETS
TO CONSIDER
FOR MAKING ESTATE GIFTS
(Beyond
Your Lifetime)
Retirement
Plans:
- You may be
surprised to learn that your retirement plan, whether IRA, 401(k),
Keogh (HR-10) or other qualified plan, is the most tax-burdened asset
you and your estate can own. Since undistributed assets remaining in
your retirement plan were not taxed during your life, they are subject
to both income and estate taxes if they are directed to someone other
than your spouse or a qualified non-profit organization. This means
your heirs, such as your children or other loved one would have to pay
the income tax that was deferred.
- There is a
sensible charitable solution – you can designate BES as the
beneficiary of your retirement plan. By naming BES as your beneficiary
now, while you are living, you avoid the income tax and provide a
charitable estate tax deduction for the full value of the gift.
- You may continue
to make withdrawals during your lifetime.
- You can change
the beneficiary anytime if your circumstances change.
Business
Interests:
- Gifts of business
interests, such as stock in a closely held corporation, S-Corporation,
shares in a professional corporation and
partnerships can be beneficial to both you and BES.
- You will receive
a charitable income tax deduction for the full fair market value of the
shares, with no capital gains liability upon transfer to BES.
- We may offer the
shares to the corporation for redemption or repurchase (if the
corporation is holding retained earnings, redeeming the shares can help
it avoid accumulated earnings tax).
- There can be no
prior written agreement between you and the corporation or a third
party to offer us such a redemption, otherwise, the IRS will impose capital
gains tax on your gift.
- You will need to
secure an independent appraisal of the fair market value of the shares
you donate.
- Make sure there
are no restrictions of the transferability of the shares.
- BES must review
and approve any transfer of business interest in advance in order to
evaluate certain issues such as marketability of the business interest,
liability and potential involvement in business operations.
Information
provided on
this website is not intended to be tax or legal advice
To request
additional information about any of our Planned Giving Programs contact:
Dick Dube, Treasurer at dmc36@myfairpoint.net
or at 802.862.0531
OR
Dale
Cawthon, Executive Director at director@beshelter.org
or at 802.862.9879
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