Wisconsin

All Saints Foundation

Retirement

We work our entire life to build a nest egg for retirement.

You save money in an IRA, employee retirement plan, or a tax-sheltered annuity.

Each of these retirement plan assets contains income that has yet to be taxed. Your beneficiaries will owe the income tax at your death, totaling up to 35 percent, which may be reason enough to consider giving your loved ones less heavily taxed assets and leaving your retirement plan assets to charity instead.

Retirement plans can be a tool with many purposes. For example, it can provide liquidity for paying taxes and other expenses at death. But, believe it or not, some of the most satisfying uses for retirement plans are connected with charitable giving. All while protecting your heirs from estate taxes.

To answer your questions about gifting retirement plans, please feel free to contact All Saints Foundation at 262-687-8653.

Gifts of Retirement Plans

If you die with retirement plan assets in your estate, those assets are subject to income taxes. This can reduce the amount that normally would be passed to heirs by up to 35 percent. In contrast, as a nonprofit organization, we are tax-exempt and eligible to receive the full gift amount and bypass federal taxes. Income taxes can be avoided or reduced through a carefully planned charitable gift. Consider these gift options:

  • Designate the All Saints Foundation as the primary beneficiary for a percentage of your retirement plan assets.
  • Designate a specific amount to be paid to us before the remainder is divided among family beneficiaries.
  • Make us the contingent beneficiary to receive the balance only if your loved one who has primary beneficiary doesn't survive you.

You can also consider creating a charitable remainder trust for heavily taxed retirement plan assets. Such a trust could be set up to receive the proceeds of your retirement plan at your death. The trust would pay income for life to a family member of your choosing, after which the remaining assets pass to us.

Is This Gift Right For You?

If you can answer yes to the following questions, you may find that it makes good sense for you to name the All Saints Foundation the beneficiary of your retirement plan assets. If not, we can help you find an option that better fits your needs.

  • Do you have savings in retirement plan assets, such as an employee retirement plan, IRA or tax-sheltered annuity?
  • Have you investigated the tax implications of leaving your retirement plan assets to your loved ones versus leaving them to charity?
  • Would you like to make a difference at our organization in the future?

Changing Beneficiaries

If you decided to protect your heirs from heavy estate taxation by making a charitable donation of your retirement plan assets upon your death, simply contact your retirement plan administrator for a change of beneficiary form. Then decide what percentage you would like the All Saints Foundation to receive, and name us, along with the percentage, on the beneficiary form. Finally, return the form to your plan administrator, and keep a copy with your will and other estate planning documents.

Note: If you are married, your surviving spouse is most likely entitled to receive the entire amount in certain qualified plans (but not IRAs). Your spouse, however, can sign a written waiver allowing the gift. How You Benefit

Leaving retirement plan assets to the All Saints Foundation shields your heirs from taxes on the retirement assets and frees you to give them other assets that are not as heavily taxed.

Find Out More

At this level of family and philanthropic distributions, it is especially critical to have a skilled planning team with expertise in finance, law, taxes, and life insurance. The benefit of the best advice possible is well worth the cost.

We would be happy to answer any questions regarding charitable giving that you or your advisor may have. Feel free to call All Saints Foundation at 262-687-8653 for a no obligation conversation.

For legal advice, please consult an attorney. References to estate and income taxes include federal taxes only. Individual state taxes may further impact results. Figures cited are examples based on current rates and are subject to change.