Tax Facts
Retirement plan assets can be subject to double taxation.
Most people do not know that if their estate is subject to estate tax, their retirement plan assets can be included in their taxable assets. This means that the individuals you designate to inherit your retirement plan assets may have to pay income tax on the amount they receive.
By giving your retirement plan assets to tax-exempt 501(c)(3) organizations such as the Georgia Tech Foundation or the Alexander-Tharpe Fund, you can avoid double taxation. The amount you give to a charitable organization is excluded from your estate. Giving your retirement plan assets to the Georgia Tech Foundation or the Alexander-Tharpe Fund is as easy as changing the beneficiary on your retirement plan beneficiary form (which can usually be found online).
Without a properly executed will, your estate is subject to the law of the state in which you reside.
You worked hard for what you earned and you have the right to determine how your assets should be distributed at your death by exercising your right to execute a will. If left to state regulations, however, your estate may be subject to more confiscatory taxes than you would like. The drafting of your will should be done with your attorney. If you would like to make a charitable bequest for the Georgia Tech Foundation or the Alexander-Tharpe Fund, please download and print this document with the appropriate wording to take to your attorney.
Charitable deduction allowances
For gifts of cash, you can take charitable deductions up to 50 percent of your adjusted gross income for the year in which you make the gift. For gifts of appreciated securities, you can take charitable deductions up to 30 percent of your adjusted gross income for the year in which you make the gift. If you cannot use all of your charitable deduction in the year of your gift, you can carry forward the remaining deduction for up to five additional years, giving you six years in which to use your charitable deduction under the AGI limitations.
