I have a client who’s wife and son can not handle money. He is 80 years old, his wife is 67, and their son is 31.

He is considering gifting $1.5 million of his IRA to a qualifying charity, not my recommendation. I know he can and will do the one time $50,000 Gift Annuity from his IRA with tax benefits.

My question is how will the taxation of the Charitable Gift Annuity in excess of the one time $50,000 will be taxed? He wants the CGA to benefit both he and his wife but 100% of the gift will come from his IRA. I am thinking he or the charity will get hit with substantial taxes but wanted to reach out to this group to see if I may be wrong.

Thank You In Advance!

Mike