Many Americans have IRAs or 401(k) plans that have greatly appreciated in value. Should you not live to realize all of that account, it makes sense to consider naming a charity to receive some of the asset.
Here's why: Contributions to some retirement plans are sheltered from income tax. However, your heirs are left out of this shelter when they inherit a plan's income. This tax exposure is called "income with respect to a decedent" (IRD) and can run as high as 70% of the payments received.
Contact your tax advisor to asses how vulnerable your heirs may be to this burden; and consider making your charitable bequests from IRD assets.
Find out more: Contact Michele Brannigan, at 401-444-4639 or firstname.lastname@example.org for more information.