Qualified Retirement Plans are subject to some of the highest taxes of any asset you can own. If you die before you have taken all of your distributions from your IRA, 401(k), Keogh, SEP or other qualified plan, the remaining balanced may be taxed as much as 75% before it passes to your heirs because they may be subject to BOTH income and estate taxes when you die.

To avoid this, you can arrange for your retirement plan to roll over to your surviving spouse upon your death without incurring any taxes. When your surviving spouse dies, however, any remaining plan assets will be subject to multiple levels of taxation, including federal income tax, federal estate tax (partially offset by an income tax deduction) and generation-skipping transfer tax (GST) if the distribution is made to a skip person, such as a grandchild.

This means that as little as 25 cents on the dollar remains for your heirs. Why give your hard-earned retirement assets to the government when you can give them to Children’s Hope instead?

Here's how:

1.       If you have no spouse, or your spouse is already adequately provided for, just fill out a “Change of Beneficiary Form” naming Children’s Hope as the primary beneficiary of your plan. Give other assets to your heirs. Your plan assets will go tax-free to Children's Hope and your heirs will receive their share of your estate without the burden of extra taxes. If your spouse is living, state law may require that he or she sign a "Spousal Waiver of Benefits."

2.       Set up a Charitable Remainder Trust in your will into which you transfer any residual in your retirement plan at your death, naming your surviving spouse or children as income beneficiaries for life or a term of years and Children’s Hope as the charitable remainder beneficiary. This approach will avoid all income tax liability and generate a partial estate tax deduction.

Benefits

· You can escape both income AND estate tax levied on the residual left in your retirement account by leaving it, or a portion of it, to charity.

· You can continue to take withdrawals during your lifetime.

· You can change your beneficiary if your circumstances change.

· You can elect to leave retirement plan assets to Children's Hope through your will or revocable trust instead.

· You can have the satisfaction of knowing that your hard-earned retirement assets will support aid for orphaned children long after you are gone.