| Planned Giving Newsletter |
Do you have questions about estate planning? Planned giving? Your will? Each month, we feature new articles and interactive features. We also share news about the charitable endowments under the umbrella of Hindu Heritage Endowment.
The Mahajana College Endowment, fund #49, supports Hindu religious activities at this school in Jaffna, Sri Lanka. Read more..."
Q & A: Inheritance Basics
Q. My wife contends that she can inherit my retirement plan assets tax-free upon my passing. I’m not so sure. Who’s right?
A. For the purposes of harmony in your home, you’re both right. Your wife is correct in that she has the ability to defer taxes on your retirement plan assets through, for example, a spousal rollover IRA. You are also right, however, in that whenever your wife makes a withdrawal from the spousal rollover, she will pay income tax on the amount withdrawn.
Q. I plan to leave my 401(k) to my children after my lifetime. How much will they pay in taxes?
A. It depends. Because this type of inheritance is treated as ordinary income, the taxes your children owe will depend on the marginal tax rate in which they fall. One of the downsides of leaving a 401(k), IRA or other retirement plan asset to your children is that they may likely receive it during their peak wage-earning years—when they’ll lose the greatest percentage to taxes. If they don’t want it all in a lump sum, they can, in most cases, stretch out their distributions (and hence some taxation) over their lifetimes beginning the year after your passing.
Q. I’d like to make a charitable donation from an IRA. What’s the next step?
A. You can designate Hindu Heritage Endowment as the beneficiary of a percentage of your IRA assets. The full value of the funds given to us will then go to support our mission (income taxes will not erode their value). To make your gift, you simply need to complete a beneficiary designation form, naming Hindu Heritage Endowment as beneficiary and specifying the percentage to go to us. This designation is completely revocable during your lifetime, and your estate will receive an estate tax charitable deduction for our share.© The Stelter Company: The information in this publication is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results.
Planned Giving Guidance
Can he give away his home and keep it, too?
Family Life at Udayan Care
This eight minute film introduces the Udayan Care ghars, homes for displaced children in India
Estate Planning Toolkit
Download our toolkit to help with your estate and gift planning preparation. The Toolkit can help you save money in attorney's fees. New: Toolkit for Canadians now available.
Essentials of Financial & Estate Planning
In this animated short video we explain some basic essentials of financial & estate planning
What is an Endowment?
This 101 second animated video explains the three types of endowments