When IRA assets are passed to an individual, they are considered part of your estate and could be subject to estate tax. The recipient, usually the remainder beneficiary you have named, is also taxed when he or she receives those assets.
While the potential for your IRA to be taxed at both levels makes it less beneficial as a gift for individuals, it is an excellent vehicle for charitable giving. Your estate will receive a deduction for the donation, and since the ACR Research and Education Foundation is a tax exempt organization, it will not have to pay income tax when it receives the assets. As a result, your gift will have a powerful impact on the REF's ability to ensure the future of rheumatology and improve the health and care of people with rheumatic diseases.
For educational purposes only and not considered professional tax or legal advice. For specific advice and assistance, the services of an attorney or other professional advisor should be obtained.
