Gifts from Estate Plans

Financial Accounts
Most accounts at financial institutions can be made payable on death to a person or a charitable organization. Ask the manager of the institution how you can arrange to designate a death beneficiary for your CD, savings account, share accounts, etc. In some areas, this is accomplished through a "P.O.D." (payable on death) designation. Securities in a brokerage account can be left through a "T.O.D." (transfer on death) designation.

Retirement Accounts
Your estate can save both income taxes and estate taxes if you make a charitable organization beneficiary of part or all of your IRA or other retirement account. Family members might keep only 30 cents on the dollar, after taxes, from these assets. Recent changes in IRS regulations have made it simpler and more favorable to name worthwhile causes as beneficiaries of IRAs and other retirement accounts.

Life Insurance
You can name University School of Milwaukee as the beneficiary of a life insurance policy (or a percentage of the proceeds) just contact the company for appropriate forms. A better idea may be to transfer actual ownership of the policy to us (assuming it is a "surplus" policy that is no longer needed for family security). Your gift will entitle you to an income tax deduction, and any future premium payments will be tax deductible.

Residences and Farms
Friends who own personal residences, including condos and vacation homes, can make gifts of their property but continue to use the property for the rest of their lives. The same opportunities works with farms and ranches. The advantage of a lifetime gift, reserving lifetime use, is that you receive an income tax charitable deduction, in addition to estate tax savings.

Call us before . . . you make or amend your will, establish a living trust or name beneficiaries for pension plans and life insurance.

Let Us "Borrow" Investment Assets Temporarily with a Charitable Lead Trust
To continue the agricultural comparison, you can "keep the tree but give the fruit." It's possible to contribute merely the income from securities or other property temporarily and enjoy substantial income tax or gift and estate tax benefits. We're talking about an exciting technique called the "charitable lead trust." Alternatively, you can lend cash (up to $250,000) and remove the annual interest from your tax bracket.

This technique can be especially helpful to friends who need large charitable deductions in a year of exceptionally high income, or face heavy federal estate taxes. Call us for details.

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