Navigating the Estate-bequest Terrain

Qualified plans and IRAs
Because funds held in qualified plans and IRAs are subject to federal income tax when withdrawn by the beneficiary, they are better suited for charitable transfers at death, rather than doled out sporadically during the donor’s lifetime.

For example, a father has $50,000 in an IRA and $50,000 in low-basis appreciated securities. He intends to leave half his estate to his college, half to his son.