Donating Retirement Assets to a Charity in Florida

Through discipline and hard work, you have grown a significant sum of money in your IRA, 401(k), 403(b), or other qualified retirement plan. First, be sure to review your beneficiary designations not less than annually to be sure they accurately reflect your last wishes and ensure your intended heirs (including trusts) are listed. If you are having a difficult time deciding who to leave assets to, did you know you can make a charitable donation from your retirement assets?

Further, did you know naming a charity can actually be beneficial to your estate and ultimately your heirs? Navigating estate planning law in Florida can be complicated. A qualified legal professional can teach you how to leverage the retirement assets in your estate plan. To sort through the noise and determine your best path forward, call us for consultation as soon as possible so you can consult with an experienced team of Florida estate planning lawyers.

Donating during your lifetime

The first charitable giving option is to make a donation during your lifetime. This can be done by cashing out your IRA, paying the income tax, and then donating the proceeds to charity. However, IRA owners over the age of 70.5 years of age and older can donate up to $100,000 directly from their IRA to a charity and avoid paying any income tax on the distribution.

Benefits of donating from your IRA to charity upon your death

If you are thinking about donating part of your retirement assets to a charity, it is in your best interests to retain the services of a skilled estate planning lawyer in Florida. We can review your estate plans and goals and explain the following each of the benefits of donating an IRA upon death:

  • You and your heirs will not have to pay income taxes on the distribution of the assets.
  • Your estate will receive a tax deduction for the charitable contribution.
  • The entire amount of your retirement account will directly benefit the charity you choose since charities do not pay income tax.
  • You can divide your retirement assets among charities and heirs based on any percentage your choose.
  • Supporting a charitable cause you believe in becomes part of your lasting legacy.

If you wish to donate to charities without siphoning money from your retirement accounts, you should consult with a knowledgeable attorney for alternative suggestions. An board certified, experienced attorney can explain how to donate appreciated assets such as stocks instead of reaching into your retirement funds.

Contact a reputable Florida estate planning firm today

Located in historic Oviedo, Florida, the Law Offices of Hoyt & Bryan is dedicated to helping clients with a wide range of estate and elder law planning matters throughout central Florida. We are the only Florida law firm with two attorneys who have earned dual board certification from the Florida Bar in Wills, Trusts and Estates and in Elder Law. To schedule a consultation to discuss your case with a knowledgeable lawyer, call (407) 977-8080, or contact us online.

Peggy R. Hoyt - The Law Offices Of Hoyt & Bryan
About the Author: Peggy Hoyt
Peggy R. Hoyt practices in the areas of family wealth and legacy counselling, including trust and estate planning and administration, elder law, small business creation, succession and exit planning, real estate transactions and animal law.