Retirement Assets

Many CED alumni and friends are discovering that they have accumulated estates and retirement plans—IRAs, Roth IRAs, 401(k)s, 403(b)s, etc.—far in excess of anything they ever imagined possible. Tax burdens—sometimes more than 70%—can diminish retirement plan assets when they are left to heirs. Making a charitable gift of retirement assets and donating other assets to family and friends is one way to lessen the tax burden associated with such assets and to support the collge at the same time.

Brokerage Accounts

More and more brokerage firms and financial institutions are allowing their clients to set up “transfer on death” or “payable on death” accounts. Similar to the traditional banking passbook savings account that had “payable on death” designations, these accounts allow assets to pass directly to the designated beneficiary and avoid probate. If you would like to make a gift of these assets directly to CED, check with your own financial institution to see if it has these account designations.

Life Insurance

Some CED alumni and friends have decided to use life insurance policies to make a significant gift. Naming CED as the irrevocable owner and beneficiary of a fully or partially paid-up policy normally entitles the donor to an income tax charitable deduction. How the deduction is calculated differs with the kind of policy. Donors can also name CED as the revocable beneficiary of a policy. Although this does not give any current income tax deductions, it does eliminate the asset from estates for purposes of the estate tax.