Your clients might be considering how to make strategic gifts using their retirement assets, particularly as part of estate planning.
Many advisors already are familiar with Qualified Charitable Distributions (QCDs) from IRAs, which allow clients ages 70½ or older to give up to $105,000 (2024 limit) directly to charity, tax-free.
But what about clients who want to make larger gifts?
One option is to name a fund at the Community Foundation as a beneficiary of an IRA. This can be a powerful planning tool – allowing charitable intent to continue after death, reducing estate taxes and avoiding income tax that would otherwise be owed by heirs.
We often work with professional advisors to direct the IRA beneficiary designation to a fund at the Community Foundation after death. A donor’s charitable goals are carefully documented with the Foundation in advance, ensuring clarity, flexibility and long-term impact. It also provides peace of mind – donors trust their wishes will be carried out.
For clients with large tax-deferred retirement accounts who want to avoid burdening heirs with income tax, these can be particularly effective strategies.
We would love to work with you and your clients to provide strategic and important estate planning that can make a true difference for both the donor and the community.
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