17 charities as benes
Hi,
A client has 17 charities she wants to name as beneficiaries of her estate along with individuals. An estate attorney helping her set up a trust mentioned taxation for individuals may be a burden and to consider bequeathing IRA to charities. I’ve read that it can be difficult to have inherited IRAs for charitable institutions. What would you suggest?
Thanks!
Permalink Submitted by Alan - IRA critic on Wed, 2023-05-24 21:53
With 17 charities currently, the number and amount that each charity would collect would usually be subject to several changes. As such, it would be better to name a donor advised fund as the beneficiary of a single IRA account and if needed to provide the DAF with changes. This is much easier than dealing with the IRA custodian each time. A separate IRA with individual beneficiaries would also insulate those individuals from possibly losing their 10 year rule distribution period if even one charity was not paid off by the beneficiary determination date, which is 9/30 of the year following the year of owner’s death.