Tip of the Day
The balance remaining in your retirement plan after your death is subject not only to federal estate tax, but also to income tax and, if you name a grandchild as beneficiary, to the generation-skipping tax. The result can be that only 20 to 25 cents on the dollar may be left for your family.
Why give so much of your hard-earned retirement assets to the government when you can give them to the Red Cross instead?
Direct the balance of your plan to the Red Cross, and use other assets not subject to all the taxes applied to retirement assets to make gifts to your family.
Recent IRS regulations make it easier to make the Red Cross a beneficiary.