Services  |   Programs  |   Resident Information  |   Application

MHDF - Home   - About Us   - Events Calendar   - Programs   MLH - Home   - Building Project   - Staff Directory   - Employees Only

Minnewaska Home Development Foundation Retirement Ideas Make Your Retirement Years More Satisfying With Wise Gift Planning Your Retirement Years and Personal Satisfaction Retirement is a milestone in anyone’s life – the final achievement of a lifetime's work. But retirement should also be a time to plan the future – for yourself, your family, and future generations. Philanthropic Gifts Can Increase Your Income Philanthropic gifts are a very attractive retirement income tool, providing income, tax savings, and immense personal satisfaction. A charitable remainder trust established after your retirement holds great appeal as part of a retirement plan because it often results in significant income and estate tax savings while continuing to provide income to you or others. The table below provides an idea of these savings.   Gift of $100,000 to Annuity Trust (Payments for One Life)   Deduction if Beneficiary Receives:   Age of Beneficiary $5,000 Annually $5,500 Annually $6,000 Annually   65   70   75   80   85   90   $41,590   $49,986   $58,317   $66,505   $73,989   $80,468   $35,750   $44,984   $54,149   $63,156   $71,388   $78,515   N/A   $39,983   $49,980   $59,806   $68,787   $76,562   Note: We can provide you with deductions for two-life plans.   The Advantages of Placing Gifts in Trust Retirees sometimes discover they have increased tax bills and investment responsibilities because they have sold their business or begun receiving retirement distributions or bonuses. Reduce your income taxes and avoid investment worries by transferring cash or other assets to a trust in exchange for a fixed or variable lifetime income, with a future benefit to MHDF. There may be favorable income taxation ramifications, as well. Example: An individual will receive a $300,000 lump-sum distribution from a company retirement plan. While taxes must be faced on the full amount, the lump-sum payment itself is available for any use or purpose. Suppose, however, this individual uses a part of the pension distribution - $100,000 – to fund a charitable annuity trust that will pay him a lifetime income fixed in the amount of $5,000 annually. The table above shows that at age 65, this individual can deduct from income taxes, more than $41,000 of the $100,000 placed in trust. The deduction will reduce regular income taxes, with an overall effect of a net reduction in his the bill. And this individual has the personal satisfaction of making a truly spectacular gift to his favorite charity. Retirement Plan Death Benefits and Gift Planning Retirees can easily combine their estate planning with support for MHDF - particularly in utilizing death benefits from retirement plans. Under current tax law, certain assets might almost be classified as "tax-cursed" property. These assets result in both income tax and federal estate taxes when they are passed to your heirs. It is advisable for people who wish to assist worthwhile causes to leave "tax-cursed" property to tax-exempt organizations and instead give family members assets that do not generate such heavy tax losses. A classic example of this type of property is the unpaid benefits from retirement savings plans such as pensions, 401(k) plans, Keogh plans, and individual retirement accounts (IRAs). How can one make death benefits from an IRA or other retirement account available to MHDF? Simply contact your fund custodian and ask for the necessary forms. Revised and simplified retirement account distribution rules now allow donors to name charities or charitable trusts as death beneficiary of part or all of their savings, without fear of exhausting the account prematurely. Lifetime Income for Heirs The IRS has approved the transfer, at death, of assets from a retirement account to a charitable remainder Unitrust that will benefit the surviving spouse. The IRS ruled that the value of the spouse’s lifetime income will qualify for the estate tax marital deduction. When the surviving spouse dies, the estate will be entitled to an estate tax charitable deduction for anything that passes to charity. In this way, you can guarantee your spouse receives income for life, eliminate estate taxes, and pass on a significant gift to MHDF in the future. In another ruling, the IRS has approved a charitable trust in a mother’s will that would make payments to her daughter from IRA death benefits. The trust will qualify for a partial estate tax charitable deduction and the IRS also ruled the trust owes no income tax as a result of being funded with IRA death benefits. IRA amounts will be taxable, but only when they are received by the daughter as trust payments. Revise Your Estate Plan You should periodically review your will and estate plan to ensure they conform to your family circumstances and personal wishes. Upcoming retirement is certainly an event that should prompt such a review. In reviewing your will or living trust, we hope you will consider the good works and personal satisfaction a bequest to MHDF would generate. For more information, please contact us. Minnewaska Lutheran Home (320) 239-2217 e-mail: info@mlh-healthcare.org The information provides is not intended as legal, tax, or investment advice. Please consult an attorney, tax or financial planning professional for questions specific to your financial situation.

Planned Giving   Basics   Ways To Give   What To Give   Additional Info   Glossary of Terms   Gift Calculator   Information for Professional Advisors

Contact Us | Site Map | Site Privacy Policy | Site Requirements

Copyright 2004 All Rights Reserved.