If an individual names someone other than his or her spouse or a charitable organization as the beneficiary of a retirement plan at his or her death, heirs may be left with less than 30 cents on the dollar from the plan. This tax bite makes retirement assets one of the worst to leave children, but one of the best for a charitable gift. The donor has complete use of the asset during his or her lifetime. What is not used can also come to Carson-Newman. A retirement plan can also be put into a testamentary charitable remainder trust to provide future income for a spouse or others.
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There are several ways to use life insurance to further a charitable cause. An individual who owns a home or farm and who intends to live in the property for life can still receive substantial income tax savings. The tax savings are accomplished through a retained life agreement, also known as life reserved. The life estate is accomplished very easily by preparing a deed from the donor to the college.