FAQ Friday: Charitable Trusts for Retirement Assets

On Friday, February 11th, at 11am EST, Mr. Berger discusses if charitable trusts for retirement assets might be best for your planning and what that entails.

You can name a Charitable for some or all of a Trust as a beneficiary. You just need to use a percentage instead of a firm number.

There would no tax to the charity if you leave 10% of the IRA to a charity. The remainder would go to your beneficiaries. Giving money outright upon death is most efficient when naming the charity.

Your custodian could also make a direct payment from your IRA upon death to a charity and won’t be considered part of your income.

You can name an IRA to a charitable remainder trust. This is a way you can stretch payments out as long as 20 years. They will make payments to your beneficiaries and once all those payments are made, the charity receives what’s left. The remainder needs to be at least $5,000.

Money should grow 6-8% in a charitable trust. As interest rates rise, this strategy gains profitability.

We want a steady income flow to our beneficiaries.

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