Planned Giving
Strategies of Giving Under the SECURE Act
The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) is a far-reaching bill that includes significant provisions aimed at increasing access to tax-advantaged accounts and preventing older Americans from outliving their assets.
Below are just a few of the changes that can affect gifts through retirement plans:
- The RMD (Required Minimum Distribution) age is now 73. However, you can still make a Qualified Charitable Distribution (QCD) at 70½ .
- Heirs now have only 10 years to take Required Minimum Distributions. This means the government will get their taxes much sooner. Now's a good time for a thorough tax review by an expert. In some cases, it might make sense to open a charitable remainder unitrust to maximize legacy benefits.
Retirement plans are taxed at ordinary income rates when left to heirs, but there's zero-tax when you donate such assets to Indian River State College Foundation. So, leaving tax-favored assets to heirs is a smart tax strategy.
Therefore, if you're considering a gift, consider making it through your retirement plan or a "tax free" gift though a Qualified Charitable Distribution (QCD, or the IRA Rollover), and leave less taxed assets, such as appreciated securities, to the ones you love.
Create a Lasting Legacy
Philanthropic planning is a powerful mechanism for meeting personal estate planning objectives while making a meaningful impact on the College’s initiatives and mission. At Indian River State College, we welcome the opportunity to work with estate planners to ensure that your clients find the charitable arrangements that best meet their needs.
Estate-planning options can achieve significant tax benefits while furthering a client’s philanthropic goals:
- Gifts through a will or trust
- Charitable trusts and gift annuities
- Donation of stocks and mutual funds
If your client has already included or intends to include Indian River State College in their will or estate plan, or if you would like someone from IRSC Institutional Advancement to contact you to discuss how to support IRSC as part of their estate planning strategy, please contact us.
