If the largest asset in your estate is your retirement plan, such as a 401(k), IRA, or Keogh, you may be surprised to learn that the IRS will impose income tax on the remaining balance in the account if you designate it to a beneficiary other than your spouse. This tax is in addition to the estate tax that may be imposed on the account. For estates fully subject to the estate tax, the result can be that up to 60 percent of the value of your retirement plan will be consumed in taxes before your child, relative or friend receives it.

There is a sensible charitable alternative: name the Partnership as the beneficiary of your retirement plan, then use other assets not subject to income tax to make gifts to your heirs. The Partnership, as a qualified 501 (c)(3), won't pay income tax on our distribution and your heirs will receive their share of your estate without the burden of extra taxes.

• No estate tax is due on the retirement plan assets that pass to the Partnership.
• The gift will qualify your estate for a charitable deduction.
• The funds may be used to establish a life income trust for a person of your choice.
• You retain access to all your retirement plan assets during your lifetime.
• Your donation to the Partnership will reflect your charitable interests.

For more information, please contact David LeDuc, Development Director, at 608.828.8844 or .