Retirement Plans, Insurance & Real Estate
Convenient ways to support WQLN’s future. They may reduce your tax burden.
Retirement assets are considered to be one of the best assets to use in making a charitable gift because, under current law, passing these assets to your heirs can subject them to estate and income taxes that can reduce them by as much as 80%. Special consideration (by you and your financial advisor) should be taken with retirement assets.
However, careful planning concerning the withdrawals from retirement funds needs to be done. Not only is there a potential income tax burden, but if there is a balance in your retirement account at your death, there may be estate taxes as well. Estimates are that taxes could eat up as much as 75-80% of retirement assets under certain circumstances.
Using qualified retirement plan funds is an excellent source of assets to fund bequests. By designating WQLN Public Media as a beneficiary (it can be a contingent beneficiary after the death of a spouse) funds pass to WQLN free of taxes.
It is possible to set up the beneficiary as the recipient of the entire remaining funds in the account or establish a percentage to fund the bequest.
Please note - the designation of the station as a beneficiary of retirement fund assets cannot be simply written in your will or trust. The station must be designated as a beneficiary of the retirement plan.
There are several ways you can use life insurance as the basis for a charitable gift.
Making the charity a beneficiary of your Life Insurance Policy
ou may wish to make WQLN the beneficiary (or a contingent beneficiary) of a life insurance policy as a way to make a sizeable future gift.
You retain lifetime ownership of the policy, keeping the right to cash it in, borrow against it, and change the beneficiary.
A gift of this nature is treated much like a bequest made through your will. Because you retain the ownership of your asset (the policy), you will not receive an income tax charitable deduction for this future gift or for your premium payments during your lifetime.
The policy's proceeds will be included in your gross estate, and your estate can take an estate tax charitable deduction.
Making a gift of your policy
You may wish to transfer ownership of a policy to WQLN, or purchase a new policy with WQLN as owner and beneficiary. If you make a charity the owner and beneficiary of a policy, you are entitled to certain tax advantages.
A residence, a vacation home, a farm, acreage, a vacant lot—any of these may have so appreciated in value through the years that its sale would mean a sizeable capital gains tax! By making a gift of this property instead, you would avoid the capital gains tax, and receive a charitable deduction for the full fair market value of the property. It is also possible for you to continue to use the property for your lifetime while you receive a tax deduction.
Note: If the contribution from your property exceeds the allowable charitable deduction limits, the deduction may be carried forward for five years.
Here's another idea...
Ask your attorney or financial planner how you can fund a charitable remainder trust with property that will provide you with an income over your lifetime!
Two creative ways to make a meaningful gift to WQLN!