Today, many people find that one of the more significant assets in their estates is their retirement plan investments. Yet it is one asset that is costly for owners to pass on to heirs after his or her lifetime.
Retirement plans, under certain circumstances, can be subject to taxes of nearly 80 percent when the owner dies and the final distribution is made. This is due to the imposition of some or all of the following: income tax that would have been due had the owner received the distribution, estate and inheritance taxes, excise tax on excess accumulations, and generation skipping transfer tax.
Your estate can save significantly on both income and transfer taxes if you make The UCLA School of Law Foundation a beneficiary of your individual retirement account, pension, 401K or other retirement savings plan. You also can arrange for lifetime income to be paid from retirement funds to a family member after your death, with UCLA’s benefit coming later, or make UCLA School of Law an alternative or contingent beneficiary.