What are they?
People who have planned carefully for their retirement may find that the assets in their IRAs and other qualified plans exceed their needs. While there is currently no tax benefit to transferring retirement plan assets, including the annual minimum distribution amount to any charity during your client’s lifetime*, they can designate that assets remaining in the plan after their death are contributed to a donor-advised fund—or to any other gift plan.  This strategy can be far more advantageous than having those assets included in someone’s taxable estate or leaving them to heirs, in which case they may be taxed at a cumulative rate of over 65%.

* the CARE Act, currently moving through Congress, would allow individuals to  transfer retirement plan assets to charity without having to include the amount in their taxable income.

Highlights:

• No estate tax is due on the retirement plan assets that pass to MCF.
  
  
• The gift will qualify your client’s estate for a charitable deduction.
  
  
• The funds may be used to establish a life income trust for a person of their choice.
  
  
• The only document required is a change of beneficiary form, which is available from the plan’s administrator.
  
  
• Your client retains access to all their retirement plan assets during their lifetime.
  
  
• Your client’s fund at the Foundation will reflect their charitable interests.
  
  
• There is no minimum amount required for this type of gift, and there is no fee to establish a fund.

For more information about how MCF can partner with you to serve your clients, send us an e-mail or call Aviva Shiff Boedecker, director of gift planning, at 415.464.2516. You may also want to request a copy of You Have a Partner: An Introduction to the Marin Community Foundation for Professional Advisors. This guide provides an overview of the many ways we work with advisors to help them meet their clients' charitable needs.