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| IRA to Testamentary Gift Annuity |
Stan and Rita Lawson were updating their wills and wanted to provide income for their daughter, a single mother, and her daughter. They also wanted to make a gift to Special Olympics Missouri.
Their IRA had grown in size over the years, and despite the ebb and flow of the markets, had performed well. Now it was a good portion of their estate. They wondered how they could use the IRA to help them accomplish their goals.
Stan: We talked this over with a representative from the SOMO Endowment Fund, because we knew we wanted to make our charitable gift to them. She told us that one option that has been popular with many IRA owners is to transfer the IRA to fund a testamentary gift annuity.
Rita: Because our daughter was older, we found out that the gift annuity will distribute a high, fixed payout, which we thought was good, especially with all the fluctuations in the market. Our IRA isn't huge, but we're thrilled that we could do so much good with it!
 In their wills, the Lawsons directed that their IRA be transferred at death to a testamentary gift annuity, and the revenues be used to fund a SOMO Endowment Fund Gift Annuity for their daughter. Their estate would benefit from an estate tax charitable deduction, and their daughter, as beneficiary, would enjoy income that is partly tax-free.
Knowing that their daughter would have guaranteed income for life and be able to provide for her child made the Lawsons happy. The fact that Special Olympics Missouri would also benefit was a wonderful outcome, too.
If you would like to receive more information on the benefits of an IRA gift, click here.
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