Case Study

Planning a Financial Legacy

Jack has been retired for several years. He receives a pension and Social Security, and does not require funds from his IRA to support himself and his wife. He indicated that he would like to help fund his grandchildren's education, and also create a charitable account that he could administer with his family. Through the financial planning process, we were able to suggest that he open 529 plans for each grandchild. Funds used to contribute to this account would reduce his estate subject to estate taxes. Additionally, we determined that a donor advised fund, named after the family as a charitable fund, would be a good way to provide a legacy.  Funds contributed to the account qualify for tax purposes as a charitable contribution in the year made, and for several years he has been able to transfer funds directly from his IRA into the family charitable fund.  His grandchildren are involved in finding appropriate recipients of their donations.

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