Retirement Plan
Naming ASHRAE Foundation as the beneficiary of a qualified retirement plan is becoming an increasingly popular way to give. Because of the way qualified plans are taxed, at your death relatively little of the assets in the plan may end up in the hands of family members or beneficiaries. These assets not only are included in your gross estate for federal estate tax purposes, but are also taxed when received by the beneficiaries as income in respect of the decedent.
Funding a charitable gift to ASHRAE Foundation with these assets generates an estate tax charitable deduction. Further, ASHRAE Foundation will not have to pay income tax on the assets when they are received. So, using plan assets for a gift to ASHRAE Foundation and other assets for family members can be beneficial to all.