Qualified retirement plan assets are the most tax-burdened assets you can own. Many people do not realize that if they die with no surviving spouse, any balance remaining in their qualified plan could be subject to multiple levels of taxation before distribution—including federal estate tax (if applicable), income tax, state inheritance tax, and even generation skipping tax--that can claim 70% or more of its value. It is often advantageous, therefore, to donate such assets to charity. This can be done by simply naming Haverford the primary beneficiary of all or a portion of your retirement plan, by gifting any remaining plan assets through your will, or by directing remaining plan assets into a testamentary Charitable Remainder Trust that provides income to your heirs for life or a term of years, after which the principal reverts to Haverford. Contact us to explore the approach that best meets your needs.
HINT: Consider naming Haverford a 25% primary beneficiary with your spouse (spousal waiver of benefits may be required) and 100% secondary beneficiary in the event your spouse predeceases you.