Suppose you owned an asset upon which was fastened the label: “68% Income and Estate Tax Due.” 

Impossible? Not if the asset is your IRA or other retirement account. A combination of income and estate taxes can severely deplete the retirement savings accounts of many people, leaving little remaining for heirs. 

Suppose, on the other hand, you named the Kansas Farm Bureau Foundations as beneficiary of your account. All taxes on these assets would be avoided resulting in tremendous benefit to our programs at little cost to your heirs. 

Family Trust

You can also leave your IRA to a trust that will pay income for life (or a fixed term of years) to a spouse or family member, and the Foundations would only benefit when the trust comes to an end. In addition, your estate would be entitled to a deduction that may greatly reduce estate taxes. 

The Pension Protection Act of 2006

Congress enacted a new law in 2006. The Pension Protection Act of 2006 permits donors over age 70 ½ to make lifetime charitable gifts up to $100,000 from their IRAs in tax years 2006 and 2007, without having to recognize payments as taxable income. There is talk that Congress may extend the law to 2008 and beyond, but this is not guaranteed.  

It may be your last opportunity to give from your IRA to support the missions and services of the Kansas Farm Bureau Foundation for Agriculture and the Kansas Farm Bureau Legal Foundation. You have until December 30, 2007 for this unique giving opportunity.  

Whether you itemize your taxes or not, giving directly from your IRA offers a great opportunity to make a gift that you might not otherwise be able to make. With the growth in IRAs and the heavy taxation if left to heirs, IRAs make a great charitable gift.  

Beneficiary Change

Just instruct the custodian of your account to name the Kansas Farm Bureau Foundations as beneficiary. The custodian can provide you with the appropriate forms. 

To Learn More

Consult with your financial or tax advisor to see if this is a good alternative for you. If you have any questions about making a financial or in-kind gift to the Kansas Farm Bureau Foundation for Agriculture and/or the Kansas Farm Bureau Legal Foundation, please contact me, at 785-587-6608 or email me at shostakj@kfb.org.