• Provide binding beneficiary document that will control the distributions after your death? • Must be held accountable by law? Naming a Charity as an IRA Beneficiary ( Four Approaches ) 1. Name the charity as 100% beneficiary 2. Split between charities! 3. Split IRAs 4. Set up a Charitable Remainder Trust (CRUT) REAL LIFE – Speaking of a CRUT, this illustration may seem out of place, but I think it is important to tell you about a client of mine who established a CRUT back in 2006, depositing $454,550 and picking up a 10% bonus on the annuity we were using to fund the trust. So the beginning balance was $500,005. The client named a couple of trustees, and the client became the Income Beneficiary. Here are the numbers from 2006 through 2017. The client withdrew over $226,000 as income, and the account balance as of February 19, 2017, was over $619,000. Not bad! In addition, he paid no capital gain taxes on the stocks he gave to the CRUT, and he also received a nice tax deduction for giving the gift and using a CRUT. The CRUT has never been exposed to market risk, and it has never paid a fee or commission. What an estate planning tool! For an important summary of the rules for IRAs you should read Ed Slott, CPA’s excellent book, “The Retirement Savings Time Bomb Ticks Louder: How to Avoid Unnecessary Tax Landmines, Defuse the Latest Threats to Your Retirement Savings, and Ignite Your Financial Freedom.” You can purchase Ed’s book on Amazon.com. Isn’t it time for you to work with a person who is a genuine financial professional?
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