One way to avoid the double taxation (income and estate) is to leave a retirement asset to a charitable remainder trust at your death. The trust will provide income to one or more beneficiaries for their lifetimes or a term up to 20 years. At the end of the trust term, the remainder goes to a charitable organization, like the Society. The retirement account is included in your estate, but the estate will receive an estate tax charitable deduction for the remainder value of the trust. If the sole income beneficiary is a spouse, generally the entire retirement plan will escape estate taxes.
The two basic charitable remainder trusts:
- The annuity trust pays you, year after year, the same dollar amount you choose at the start, regardless of fluctuations in trust investments.
- The unitrust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets, re-determined annually.
In addition your own financial security, you also receive the satisfaction of supporting our important work. Call us to help you and your tax advisors arrange a plan tailored for your personal situation. For more information on charitable remainder trusts, please contact Karen.Barton@nmss.org at 760-448-8412.
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