Page 19 - December 2019 Bar Journal

CHARITABLE GIVING FEATURE

But what if my client needs all of the assets in plans, and one can also rollover a portion of Ronald Wayne is the Trusts &
the IRA to live on? a 401(k) to an IRA to accomplish the results. Estates Practice Group Leader at
No problem! Because the transfer to charity is Before implementing any of these techniques, Buckingham, Doolittle & Burroughs,
effective only at death, the IRA can be used to always consult with your estate planning LLC. Ron is an OSBA Certified
support the donor and his or her family with attorney, accountant and/or financial planner to Specialist in Estate Planning Trust
lifetime required minimum distributions or make sure you are aware of all the ramifications and Probate Law, is licensed in Florida, and has
any larger amount. Only the amount left in of your decision. been elected by NAEPC as an Accredited Estate
the account at death reverts to the charity. I like simple things that work ... like designating Planner. He is a CMBF Fellow. He has been a
In the meantime, one can also make lifetime a charity as a beneficiary of an IRA! CMBA member since 1978. He can be reached at
Qualified Charitable Distributions and change (216) 615-7349 or rwayne@bdblaw.com.
the designated beneficiary of the IRA at any time
prior to the client’s death.
To change the charitable beneficiary or
decrease the amount of the gift, just change
the beneficiary to another charity or family
member or draw down from the IRA; it is
totally within the client’s control.

A further improvement
Instead of choosing a particular charity to
receive all or a portion of an IRA at death, one
can designate a Donor Advised Fund (DAF)
of a Public Charity as the IRA beneficiary.
That way the client’s family advisors to
the DAF can either distribute the entire
testamentary gift to the intended charity
at death or make grants over many years
from the DAF to various charities which the
family wishes to support. Some parents create
multiple DAFs in the names of each of their
children so that each child can recommend The Power of Every
their own charitable grants.
Clients might even carefully create and Legacy
then designate a private family foundation as
the beneficiary of a large IRA because family
foundations qualify as charitable beneficiaries
of IRAs. Because of donors’ generosity, we are putting big ideas to work
on discoveries and innovations, so the smallest, most treasured
Final thoughts and the SECURE Act moments in life are possible.
A charitable beneficiary designation avoids That’s the legacy that donors leave here.
both income tax and probate at death. If the
estate is very large (say over $11 million), you We look forward to working with you so that your clients can
will also avoid estate tax on the value of the make the most of their giving and leave their own legacy for
IRA. If the IRA would otherwise be subject to our patients and community.
both income and estate taxes, 60% or more of
the value of the IRA could be lost to those taxes. Learn more at powerofeveryone.org,
If the SECURE Act, which passed in the House
of Representatives by an overwhelming majority call 216.444.1245
or email giftplanning@ccf.org
in May 2019, actually becomes law, withdrawal
periods from inherited IRAs will be limited to a
maximum period of 10 years for all beneficiaries
except spouses. This time constraint will make
the argument in favor of designating a charity as
the beneficiary of an IRA even more compelling.
These distribution options are generally
applicable to 401(k)s and other retirement

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