Susan and her late husband Michael had been longtime supporters of the Allentown Symphony. Recently, Susan's children encouraged her to update her estate plan. Susan had been thinking about meeting with her attorney to discuss how she could make a significant gift to support our work.
Susan: Michael and I were passionate about the Allentown Symphony. Michael especially loved going to jazz concerts because he grew up playing the saxophone. When he passed away, I wanted to make a gift that would honor his memory.
When she met with her attorney, Susan explained her goals and described her assets. She'd inherited Michael's IRA, which when combined with her own, would provide her with the necessary retirement security she needed. She even had enough to allow her to take regular vacations and splurge on gifts for the grandkids.
Susan: I had originally thought about leaving my IRA to our kids and other assets to charity. My attorney suggested a different strategy and told me that an IRA is a great gift to leave to charity. He explained that if my kids inherited the IRA, my estate would pay estate taxes and my kids would pay income tax on the IRA. But, by giving the IRA to charity and other assets to my kids, the kids will still receive a nice inheritance, and we avoid income and estate taxes entirely!
Susan: Making a gift of my IRA was easy! I contacted my IRA custodian, who emailed me an IRA beneficiary designation form. I completed the form, named Allentown Symphony Association as the primary beneficiary of my IRA and mailed it back to the custodian. I called the symphony to tell them about my gift, and they were very touched. I know Michael would be happy too. Best of all, I can continue to use my IRA for as long as I live, and when I pass away, my IRA will go to the Allentown Symphony.
If you own a qualified retirement plan, such as an IRA, 401(k) or 403(b) and would like to make a charitable gift, your family or your estate might benefit if you update your beneficiary designation form naming the Allentown Symphony Association as a beneficiary. Beneficiary designation gifts may help your heirs avoid paying income tax on certain inherited assets and may help your estate avoid estate taxes.
If you have questions about making a beneficiary designation gift, please contact us. We are happy to work with you and answer any questions you have.