Testamentary Trust

Daniel and Alice had often put some of their savings into the stock market. One of their first charitable gifts had been a gift of appreciated stock. They were also employed by companies that had 401k plans. They kept investing and the value of their plans kept growing.

Alice: "Our first experience was giving several hundred shares of a stock that had more than doubled in value. We needed some help that year with our tax situation and that gift was a great idea. Also, our tax-sheltered retirement plans kept growing and just recently we rolled them into our IRA. It's grown beyond our wildest dreams. But taxes will eat up so much of it. Not that I need it all, but we were hoping to get more value out of it."

"We found a way to do everything we wanted - have access to the principal if we need it and, when we're gone, provide income for our kids. And, this will provide a nice gift for those who need it. Our attorney told us about a testamentary charitable remainder trust funded with the assets that remain in our IRA after we're gone."

"Tax benefits, protecting our family, and knowing we're making a difference in other peoples' lives - it feels good! It was something Dan and I did together, and I'm happy; really happy we did it when we could do it together!"

A testamentary trust only becomes effective and irrevocable at the time of your death. For Daniel and Alice (individual circumstances will vary - as with all tax and estate planning, please consult your attorney or estate specialist), a beneficiary designation in their IRA will transfer the remaining assets at their death (second to die) into the testamentary charitable remainder trust.

The results are that the assets remaining in the IRA at their deaths will not incur any income tax liability going into the trust and a nice future gift is established. In addition, a taxable income stream for their heirs is created and some estate taxes may be saved. Additional information regarding gifts of retirement assets is available.

As we said earlier, there are as many ways to support WFAE 90.7 FM as there are needs for your support. Please contact us should you have questions or if you would like to discuss your personal circumstances to see how you can enrich your heart as many others already have. The following page has some further thoughts about joining the family of support for WFAE.

Please note, individual financial circumstances will vary. The information on this site does not constitute legal or tax advice. As with all tax and estate planning, please consult your attorney or estate specialist. All material is copyrighted and is for viewing purposes only. Use of this site signifies your agreement with the terms of use. This Planned Giving section has been developed for WFAE 90.7fm by Future Focus. Please report any problems to webmaster. Revised: September 18, 2008 12:40 .

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