As chief financial officer for high net worth families, I’ve heard many financial concerns. Among their key concerns are lowering taxes and managing charitable gifting goals in a tax-smart estate planning strategy. One way that you can minimize the amount of income taxes on your heirs and your estate is through charitable direct donations of retirement accounts to the Deschutes Land Trust.

The first place I counsel clients to makes gifts to non-profit 501(c)3 organizations—like Deschutes Land Trust—is from their Individual Retirement Account (IRA), beneficiary IRA, and rollover IRAs.

Deschutes Land Trust will provide the acknowledgement of a direct donation you need to claim that deduction from a charitable contribution.

If you are 70 ½ or older, you must take Required Minimum Distributions from your IRA. You can gift up to $105,000 (or double if your spouse gifts from their IRA on a joint tax return) each year. This allows you to exclude all those funds from your taxable income, unlike regular IRA withdrawals. Keeping your taxable income lower may also reduce the impact of tax credits and deductions, including Social Security and Medicare. Also, you don’t have to itemize these qualified distributions.

Another key estate planning tool along this line is to name a charity such as Deschutes Land Trust as beneficiary to receive your IRA assets upon your death. Neither you, your heirs, nor your estate will pay taxes on the distribution of these assets. This charitable contribution can be used to offset estate taxes. This full amount of your account will benefit the charity of your choice.

 

Thanks, Steve, for providing this important information!

 

Please note: The Deschutes Land Trust can provide information about charitable giving through your IRA, but we cannot provide legal or tax advice. We encourage you to seek independent financial assistance.

Steve Brown first connected with and began appreciating Central Oregon's natural beauty during his college days at Lewis & Clark, where he encountered the high desert on several field biology trips. Those early experiences, including an internship with The Nature Conservancy, kindled a lasting admiration for the region and an understanding of the importance of conserving our natural landscapes.

Steve’s professional journey has largely been anchored in the realms of financial planning and wealth management. As President of NW Securities Advisors, he has had the privilege of offering wealth guidance and family office functions. He is also a Certified Trust and Fiduciary Advisor. In addition, Steve enjoys service work in the community. He is currently a member of the Board of Advisors for the Crook County Economic Development Commission and previously served as Board Member and Treasurer for the 20,000 member Multnomah Athletic Club and other non-profit organizations.

Outside of work, Steve treasures hikes, skiing, gardening, everything outdoors and most importantly, time spent with family including his wife Natasha, three adult sons, and three rambunctious doodles. He has embraced the region and its stunning beauty.

 

The Deschutes Land Trust is recognized by the IRA as a 501(c)3 tax exempt, publicly supported organization. Contributions are tax deductible to the extent of the law. Our tax ID is 93-1186407.