Skip to Main Content
Back to Main Website

Leave a Legacy.
Make Your Impact.

Let us help you tailor your charitable gift to your financial, tax or estate planning objectives

Learn more
  • Subscribe to our weekly Enewsletter, featuring news from Washington, finance information and stories about others who have benefited from giving. Donor Enewsletter
  • Our free guide will help you get started with providing for your needs, your family's future and your favorite causes. Estate Planning Guide
  • Join other supporters who are recognized for including our organization in their planned giving or estate plans. Quill and Sword Society

Giving Home > Donor Stories > A Bequest to Save Taxes

A Bequest to Save Taxes

Thomas was a widower who had a great love for his choice organization. As an individual who had directly benefited from their work, Thomas wanted to thank his choice organization with a gift from his estate.

Thomas told his attorney that he wished to leave a bequest to his choice organization as part of his estate plan. Thomas's estate included some stocks, real estate and an IRA. Thomas's attorney recommended that he give the appreciated stock and real estate to his children and leave his IRA to the nonprofit organization.

  • Thomas: "My attorney told me that if I gave the stock and real estate to my children, these assets would receive a step up in basis at my death. My children could then sell them without paying tax. However, if I gave my children my IRA, the IRA would be subject to estate and income tax. After paying all of these taxes, very little would be left for my family. By giving the IRA to this organization, I could make a nice gift and avoid any additional tax for my estate and children."

Thomas contacted his IRA custodian to obtain a beneficiary designation form. He filled out the form and designated their organization as the 100% recipient of his IRA account. Thomas's attorney then specified in Thomas's will the bequest of his other assets to his children.

  • Thomas: "I was so impressed with my attorney's advice that I named him executor of my will!"

Thomas called and notified his choice organization of his bequest. He was pleased that their organization was a tax-exempt institution, it would receive the full amount of the IRA value when he passed away, creating a legacy for the future.

What is a charitable bequest?

A bequest is a gift you can make to support your choice organization's mission in your will, living trust or with a codicil.

Charitable bequest video

Is a bequest right for you?

It is easy and convenient to include a bequest in your will or living trust. This link includes sample bequest language that can very easily be included in your will.

You might find it helpful to print this page and the bequest language to give this information to your attorney. If you or your attorney have any questions, please contact us.

Please note: The information above is representative of a typical donor and may or may not be an actual donor to our organization.