For philanthropic METARs with large IRAs.
What I like about this is that the transfer is on death so if I need the money I can spend it but if I die first I can donate it after death.
https://www.wsj.com/articles/leave-ira-money-to-charity-dona…
**Win an Income-Tax Trifecta With Charitable Donations**
**There’s a tax-smart way to make bequests by using assets from individual retirement accounts at death**
**By Laura Saunders, The Wall Street Journal, Sept. 2, 2022**
**...**
**“If leaving money to charity is part of your estate planning, there are no better funds to leave than traditional IRA assets. When I explain this to people, a lightbulb goes on...”**
**The first advantage is tax efficiency. Donors of traditional IRA assets at death can win an income-tax trifecta—no tax on contributions going in, no tax on annual growth, and no tax on assets at death....**
**Giving IRA assets funnels pretax dollars to the charities, which won’t owe tax on them. A cash donation would be of after-tax dollars.**
**Donating the IRA assets to charity is also typically better than giving stock held in a taxable account. Under a provision known as the step-up, there is no capital-gains tax on such investment assets held at death. ...**
**Making these changes is often easier with traditional IRAs than a will. For example, an IRA owner could set up a dedicated IRA naming one or more charities as beneficiaries and then move assets from other IRAs into it via direct tax-free transfers. The beneficiaries and the percentage they will receive can easily be changed, and the owner also can raise or lower the total donation by transferring assets between IRAs....** [end quote]
That’s clever. I never thought of that.
I wouldn’t do this when DH is still alive because he might need the money. But if he pre-deceased me, I think this is a good idea.
Wendy