How to Create A Legacy you Want? Gift Your IRA to Charity


At Lasaii Benefits, during the holiday season, our hearts swell with goodwill towards men (and women). It’s a time to reflect about the type of people we are and the type of people we aspire to be. Do those two people align? What lasting impact will we leave when we’re gone and what can we do to ensure our legacy now?

So we ask you, if you could have any legacy, what would it be and how would you ensure it?

Maybe your church needs a new kitchen to better serve those in need? How about an extensive dream backyard for those dogs you love at the shelter to run free? Funds to go towards cancer or Alzheimer’s research? Maybe you believe sports and being a part of a team is very important because it was for you growing up, so you want to be sure your local community center will be able to provide those types of after school programs?

The Answer to Creating your Legacy? Give your IRA to Charity!

If you have a large estate and an IRA with over a million dollars in value, you probably have been told by your advisor that your IRA will be taxed at the highest tax bracket at death thereby taking a huge chunk out of your heirs inheritance, unless you have or plan to use a Stretch IRA. (Read about the impending death of the Stretch IRA with the SECURE Act and our creative solution here):

End of Stretch IRA?

Because of this factor, it might make more fiscal sense to then gift that large IRA to a charity you believe in and can receive 100% of the IRA’s value instead. (Tax-free).

Gifting an IRA Alone Does Have a Few Hiccups

When you turn 70.5, you’ll have to start taking RMD’s (required minimum distributions), which results in the charity of your choice receiving a diminished value in the IRA and an immediate tax consequence to you. On top of that, gifting the IRA alone will also not benefit your heirs in anyway. Therefore, gifting your IRA alone to a charity can still result in a few unattractive hiccups. But there is another way; a way that can benefit you, your heirs and the charitable organization of your choice.

Solution: IRA in Coordination with Real Estate to Occupy

In short, implementing our proprietary IRA/Real Estate Charitable Legacy Plan™ of purchasing real estate with the help of an IRA removes the problems of gifting the IRA on it’s own by redirecting those mandatory distributions into a partner investment-the real estate, thereby totally or partially eliminating the tax liability to you on those required distributions. (*If you qualify).

The charity then receives the full value of your gift.

And lastly, the one thing that EVERYONE loves (especially your heirs) the TAX BENEFITS they will receive upon passing the real estate purchased with the help of the IRA to the charitable organization. That’s called strategy my friends.

The benefits of this philanthropic IRA/real estate plan are as follows:

  • Upon death, give a significant donation to a charitable organization of your choice, thereby satisfying your philanthropic philosophy and greatly benefiting the recipient.

  • Eliminate or significantly reduce the income tax liability of your RMD mandatory IRA distributions. (*If you qualify).

  • Protect each end of the year account value of your IRA while at the same time supporting the purchase of IRA real estate.

  • Full right of occupancy of the IRA real estate for you and your extended family during your lifetime.

  • When the IRA Real Estate is distributed to the charitable organization of your choice, your heirs could benefit from significant tax relief to your estate.

  • The IRA/Real Estate Charitable Legacy Plan™ offers choices to your heirs. They can keep the real estate with the Step Up In Basis tax benefit and donate the IRA to the charitable organization, or vice versa, whichever has the best benefit upon the death of the donor(s).

What are those organizations that stand for something you believe in and you want to ensure that their work continues long after you’re gone?

Five Local Non-Profit Organizations That We Love:

  1. ARCH: Affordable housing is at the heart of strong local economies and individual economic opportunity. We are building communities one home at a time. mhttps://archbc.org

  2. Trailing of the Sheep: Trailing of the Sheep Festival shares a vibrant, honest celebration of people and the land by connecting the past to the present to keep our history and heritage alive for future generations.http://www.trailingofthesheep.org

  3. Stella’s Shelter Fund: We can bridge the gap between our local community and other communities of southern Idaho by working together to save homeless, neglected, and abused animals.https://www.stellasshelterfund.com

  4. Wood River Land Trust: To protect and sustain the treasured landscapes and life-giving waters of the Wood River Valley and inspire love for this special place for generations to come.https://woodriverlandtrust.org

  5. NAMI: NAMI works to break down the barriers of stigma relating to mental health conditions, allowing space for individuals and their families, to step out of the shadows and seek out help.
    https://nami-wrv.org

These are just a few that are close to our hearts. Check out the Giving Guide of the Wood River Valley here https://www.givingguidewrv.org/ for a full list of the wonderful non-profit organizations in the valley to volunteer for or donate to. Tis’ the season!

Become a Part of Lasaii Benefit’s Community

Lasaii Benefits believes in sharing financial knowledge, working hard for their clients, and practicing ethics in life and in business.

We specialize in helping clients structure customized, tax effective IRA Real Estate to Occupy investments that enhance their portfolios, lifestyles, market positions, and legacies.

Since 1992, Lasaii Benefits have been the leading experts in the IRA Real Estate to Occupy Industry.

We invite you to visit our website to subscribe to our weekly newsletter to learn more information about our program, and to receive news, alerts, and unique financial analysis!

See If I Qualify