Save Income and Estate Taxes

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Nonprofit Organizations and other Charity topics.

What are the tax implications of making a bequest?

Save Income and Estate Taxes

If you want to give to charity from your pension plan account or IRA, you can save income and estate tax by making these gifts through your will. Even after your death, the person or who receives the pension or IRA money has to pay income taxes on that money unless the recipient is a charity.

If you have already provided well for family members, a posthumous gift of a pension or IRA to a charity both reduces your estate and helps reduce estate taxes and avoids the income tax that your heirs would have to pay upon receiving these accounts. This is, of course, a simplification of the various issues related to planned giving and tax benefits.

*Be sure to get personalized and professional advice from someone sophisticated in this area.

   

Comments

Nobody has commented on this tip yet. Be the first.



Name:


URL: (optional)


Comment:


Not finding the advice and tips you need on this Charity Tip Site? Request a Tip Now!


Guru Spotlight
Tammi Reynolds