Tom Wolf is a retired CPA, aged 75. With good investments, his IRA had grown to become over 80% of his total estate. Tom was looking for a way to rebalance his estate. He wanted to make a major gift to charity, but needed to protect his home and personal savings. So Tom decided to make a gift of $100,000 from his IRA to the Jewish Federation of Las Vegas in 2013.
Tom: Like many business professionals, my IRA had become the largest part of my estate. My estate planning attorney said that I needed to do some "asset balancing" to avoid future tax problems.
Tom had been involved in many charitable causes and had thought about making a gift to the Jewish Federation of Las Vegas.
Tom can achieve his tax objectives by making an annual charitable gift from his IRA. The benefit of the plan is that this gift could be made tax-free and would help to rebalance Tom's overall estate.
The American Taxpayer Relief Act of 2012 extends the qualified charitable distribution (QCD) for 2013, provided that the donee is over age 70 1/2. This gift qualifies as the Required Minimum Distrubution (RMD). Please contact your IRA administration for the appropriate documents.
Tom: The IRA gift turned out to be a good decision. It helped me achieve my estate planning goals and enabled me to make a major gift that qualified for my required distribution.
Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since your IRA gift benefits under federal rules may be different from this person, please contact Daniel Prepas at Daniel@jewishlasvegas.com.
Please login to leave a comment