Sponsored By
Trusts & Estates logo

Structuring a Charitable Bequest of IRD AssetsStructuring a Charitable Bequest of IRD Assets

Maximize the impact of your client’s gift

Christopher R. Hoyt, Professor of Law

May 26, 2015

24 Min Read
Structuring a Charitable Bequest of IRD Assets

Decedents’ estates contain an increasing amount of income in respect of a decedent (IRD) assets (principally in the form of individual retirement accounts and other retirement plan assets). These assets trigger taxable income to the beneficiaries when they receive a payment. If an individual with a sizeable amount of IRD assets intends to make a charitable bequest, estate planners recognize that those assets can be the most attractive property with which to fund the charitable bequest. If all goes well, the entire pre-tax amount of IRD can be transferred tax-free to a tax-exempt charity.

But, sometimes things don’t go well. The worst case scenario is that an estate or trust might have to recognize taxable IRD income but won’t be able to c...

Unlock All Access Premium Subscription

Get Trusts & Estates articles, digital editions, and an optional print subscription. Choose your subscription now and dive into expert insights today!

Already Subscribed?

About the Author

Christopher R. Hoyt

Professor of Law, University of Missouri

Christopher R. Hoyt, JD is a Professor of Law at the University of Missouri Kansas City School of Law where he teaches courses in the area of federal income taxation and business organizations.  Previously, he was with the law firm of Spencer, Fane, Britt & Browne in Kansas City, Missouri.  He received an undergraduate degree in economics from Northwestern University and he received dual law and accounting degrees from the University of Wisconsin.

Professor Hoyt has served as the Chair of the American Bar Association’s Committee on Charitable Organizations (Section of Trusts and Estates) and is on the editorial board of Trusts and Estates magazine. He is an ACTEC fellow, has been designated by his peers as a “Best Lawyer”, and was elected to the Estate Planning Hall of Fame by the National Association of Estate Planners & Councils.  He is a frequent speaker at legal and educational programs and has been quoted in numerous publications, including The Wall Street Journal, Forbes, MONEY Magazine, The New York Times and The Washington Post