Gift of Interest in Retirement Plan or

Insurance Policy

Recent changes in the tax code make gifts of retirement plan assets particularly beneficial. Depending on the size of a person’s estate, retirement plan assets may be exposed to a very high effective tax rate as they can be subjected to both estate tax and income tax.

Rather than lose a high percentage of the retirement plan to taxation, a person can make a charitable gift of the retirement plan assets thereby avoiding all taxes on the asset while supporting their favorite Christian charity.

With gifts of retirement plan assets and insurance policies, a person merely needs to name the charity as a beneficiary in the retirement plan document or insurance policy. This has the advantage of simplicity since it is not necessary to change a person’s Will or Trust.

Excerpts from Finish Faithful: How to Create a Lasting Christian Legacy for your Family by Mark Henry, JD