Gifts from Retirement Plans at Death

Retirement-plan benefits often make an excellent choice for funding a testamentary charitable gift to the UW. Not only will such a gift escape federal income tax, but it will also avoid any potential federal estate tax. This combination of income taxes and estate taxes could result in a tax hit of more than 63% of the retirement-plan benefits.

If, for example, you have designated your children to be the beneficiaries of $100,000 of your retirement-plan benefits, and your estate is subject to federal estate taxes, your children could lose $40,000 to federal estate taxes and as much as an additional $23,760 to federal income taxes for a total reduction in benefits of $63,760. If, however, you designate the UW as the beneficiary of that $100,000, the full amount will pass to us with no reduction in benefits.

How It Works


  1. You name the UW as beneficiary for part or all of your retirement-plan benefits
  2. Funds are transferred by plan administrator at your death

Benefits

  • No federal income tax is due on the funds that pass to the UW
  • No federal estate tax on the funds
  • You make a significant gift for the programs you support at the UW

Special note: Call or e-mail us to tell us of your intent, and we will assist you with the details of the transfer.

Next Steps

  • Contact us to learn more about this gift plan or other options
  • Request an eBrochure with more information about this gift (Brochure title: Charitable Tax Planning with Retirement Funds)