Three trillion dollars in retirement plans… could be severely taxed at owner’s death. That’s why we must educate people now! Ninety percent of people at 90 years of age have 90 percent of their plan balance.
That is what I heard at a trust seminar I attended. In fact, I received so much information that it will take two issues of this newsletter to disseminate it. For your particular situation, we advise that you contact your own estate planning attorney or certified public accountant.
Given the virtual certainty that tens of thousands of Americans will pass away with large retirement plan benefits, the need for estate planning strategies in this area is urgent. With federal, state and local taxation amounting to 70 percent to 85 percent for people with taxable estates, this “inheritance” plan leaves very slim pickings for some intended family members.
Grandchildren inheriting a $1.5 million individual retirement account (IRA) may receive less than $300,000 after all applicable taxes. If they lived where there is a city tax, they could actually get nothing. However, this same IRA, transferred to a charitable remainder unitrust at death, paying 5 percent annually to the grandchildren for 10 years, could net them $750,000 or more, depending on investment earnings added back to principal.
For more information, call Gospel Outreach and request the free brochures “Giving Through Retirement Plans” and “Questions and Answers About Retirement Plan Giving.”