You may wish to consider a bequest of all or a portion of your retirement accounts, such as an IRA, a 401(k) or other tax-deferred account. These accounts are subject to income tax when funds are withdrawn and, if left to heirs other than your spouse, may subject to estate taxes as well. The combined taxes could exceed 70%.
If you are considering a bequest to United Way, you may wish to use assets in your retirement accounts, and bequeath other assets to your heirs. When the assets in your retirement accounts are distributed to United Way, no income or estate taxes would be payable.
For more information, please contact Mark Spaulding at 707.528.4485 x112.
