Retirement-plan benefits often make an excellent choice for funding a testamentary charitable gift to the Lewis County Historical Society. Not only will such a gift escape federal income tax, but it will also avoid any potential federal estate tax. This combination of income taxes and estate taxes could result in a tax hit of more than 62% of the retirement-plan benefits.
If, for example, you have designated your children to be the beneficiaries of $100,000 of your retirement-plan benefits, and your estate is subject to federal estate taxes, your children could lose $40,000 to federal estate taxes and as much as an additional $22,200 to federal income taxes for a total reduction in benefits of $62,200. If, however, you designate the Lewis County Historical Society as the beneficiary of that $100,000, the full amount will pass to us with no reduction in benefits.
How It Works
- You name the Lewis County Historical Society as a beneficiary for part or all of your retirement-plan benefits
- Funds are transferred to the Lewis County Historical Society by your plan administrator at your death
- No federal income tax is due on the funds that pass to the Lewis County Historical Society
- No federal estate taxes on the funds
You are making a significant gift to the Historical Society