The distribution to charity from the trust is deductible from any trust taxable income. Qualified retirement plans and IRAs are great tools for accumulating funds for retirement but are not useful for transferring wealth to children and grandchildren. Congress wants these tax favored plans to be used for retirement. Doing so could be the most cost effective gift you could make. Only the IRS may be disappointed.
Few people realize that large retirement plan assets are often taxed twice.
This means that income tax is paid in addition to real estate taxes. A gift to charity does not trigger any of these taxes, making retirement benefits an excellent asset to give. For an IRA or Keogh plan you administer personally, simply notify the custodian in writing. After your wealth has served your personal and family needs, you may be able to make a much larger contribution to Baylor than is possible during your lifetime. Please consider supplementing your current gifts with your ultimate gift in the form of a charitable bequest.