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If you're hoping to leave unused pension funds to your heirs, these funds may be reduced to a small percentage of their value by the "triple-tax threat"--estate taxes, income taxes, and excise taxes.

Here are three options.

Make a charitable bequest with retirement funds. If you plan to leave bequests to both your heirs and the University, you will save taxes if you give other property to heirs and name the University as the beneficiary of your retirement-plan assets.

Transfer your retirement funds to a charitable remainder trust. Retirement funds remaining at your death are distributed directly to the trust, which pays income to your heirs, thereby reducing the "triple-tax threat."

Take advantage of the three-year window on avoiding excise taxes. Retirement-plan withdrawals during life in excess of $160,000 will not be subject to excise tax during 1997, '98, and '99. Consider making a withdrawal in excess of $160,000 to fund a life-income gift to Rochester. Estate tax will be reduced and the tax deduction will help offset the income tax on the withdrawal.

For details on these and other charitable-giving plans, call Jack Kreckel, director of planned giving programs, at (800) 635-4672 or (716) 273-5888. The e-mail address is

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Copyright 1997, University of Rochester
Maintained by University Public Relations
Last updated 3-27-1997      (jc)