Preserving Wealth in Charitable Giving

Maintaining large amounts in IRAs or other retirement plans, which are subject to income taxes and estate taxes upon death, can result in as much as 75% of those savings being paid to federal and state governments. One solution we have devised for many clients with charitable wishes is creating their own private foundation. The foundation is named as the beneficiary of the IRA or retirement plan proceeds, and all income and estate tax on those proceeds is eliminated. Clients’ families then have the full benefit of managing all of the funds to accomplish their charitable objectives.