Consider this legacy giving strategy: Stock to the kids, IRA to charity

At the end of March, total retirement assets in the United States topped more than $35 trillion dollars, accounting for 30 percent of all household financial assets. IRAs topped the charts at $12.5 trillion–the most assets of any retirement category. 

 If you have a traditional IRA, you’re probably familiar with the basics:  

Here’s a critical additional point that is often overlooked: Designating your fund at the North Carolina Community Foundation as the beneficiary of all or a portion of your IRAs is extremely tax advantageous. If you intend to leave money to charity when you die, chances are that this technique is absolutely the best option if you own other assets, such as stock or real estate, to leave to your family members or other heirs. 

Why is it so beneficial to leave your IRA to charity and other assets to your family? Three words: taxes, taxes and taxes.  

The bottom line here is that if you are choosing between stock and an IRA to leave one to your children and the other to charity, leaving the IRA to charity and the stock to your children is a no-brainer.  

Have questions? Reach out to the NCCF development team. We are happy to help! 

This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.