Gift Planning with Retirement Assets
Benefits
| • | Avoidance of estate and income tax |
| • | Preservation of assets for your family |
| • | Satisfaction of supporting Northeastern |
Example
John is a retired executive who has a substantial IRA account in addition
to other assets he accumulated during his working years.
He has always planned to establish a scholarship fund at Northeastern through his estate but is also concerned that he provide for his family.
When John learned that his estate and heirs would pay up to 70 percent in combined taxes on his IRA account, he decided to designate Northeastern as the beneficiary.
As a result, at John's death, Northeastern will receive
all of the assets in the IRA account — tax free — to be
used for a scholarship fund. John's remaining assets will pass to family
members without the burden of taxation.