Major IRA Gift
Bryan is a retired CPA. With good investments, his IRA had grown to more than 80% of his total estate. Bryan was looking for a way to rebalance his estate. He wanted to make a major gift to charity but needed to protect his home and personal savings. So Bryan decided to begin making gifts of $100,000 annually from his IRA to a ministry where he had volunteered.
BRYAN: Like many business professionals, my IRA had become the largest part of my estate. My estate planning attorney said that I needed to do some "asset balancing" to avoid future tax problems.
Bryan had been involved in many charitable causes and had thought about making a gift to one of his favorites. He met with the charity?s advisor to discuss his estate planning and charitable goals.
The advisor said Bryan could achieve his tax objectives by making annual charitable gifts from his IRA. The benefit of the plan was that these gifts could be made tax free and would help rebalance Bryan?s overall estate. Because of Bryan?s income level there would be additional income tax benefits as well.
BRYAN: The IRA gift turned out to be a good decision. It helped me achieve my estate planning goals and enabled me to make a major gift that qualified for my required distribution.