Planting Resources for Freedom’s Future

November 2001

Planting Resources for Freedom’s Future

By Beth Stevens

As 2001 winds down, it’s time to consider end-of-the-year tax planning.  For those who value freedom, incorporating gifts to IJ in your financial planning helps defend liberty on several fronts.

First, it gives IJ more resources to wage our battles for economic liberty, school choice, property rights and free speech.  Savvy charitable giving also can reduce your taxes, leaving you with more of your hard-earned money to spend as you—not the government—see fit.  Finally, because you’re paying less in taxes, pesky bureaucrats have fewer resources with which to squelch our freedoms.

When you meet with your attorney, accountant or financial planner, consider how you can help defend freedom in the following ways:

Donate long-term appreciated assets such as securities.  Not only will you receive an income-tax deduction equal to the fair market value of the portfolio (no matter how little you paid for it), but you also avoid paying capital gains taxes on the appreciation.  IJ can use the full fair market value to defend liberty.

Name IJ as a beneficiary of your IRA, 401(k), or other retirement account.  Retirement plan assets can be subject to a plethora of heavy-handed taxes after the beneficiary dies, including federal and state death taxes (which can reach 55 percent), income taxes and excise taxes.  This means the bulk of your hard-earned savings goes to the government.  Giving to IJ can change that.  Naming IJ the beneficiary allows the full value of the account to work entirely for liberty and not to fund even bigger government.

Naming IJ as a beneficiary of your life insurance policy is another alternative.  Proceeds from insurance policies can be subject to federal and state death taxes.  Naming IJ as the beneficiary allows all the proceeds to help defend freedom.

Create a charitable lead trust (“CLT”) or charitable remainder trust (“CRT”) for IJ.  In a CLT, you create a trust that lasts for your lifetime or a set number of years.  IJ receives the income from the trust during that time to continue our fight for liberty.  When the trust ends, the assets can be given to your loved ones at a reduced gift-tax cost.  A CLT is a great way to benefit IJ immediately while keeping assets in your family.

A CRT is the mirror image.  You or a loved one receives the income during the trust period and when the trust ends, IJ receives the property.  CRTs provide great vehicles for diversifying appreciated portfolios.

Name IJ as a beneficiary in your will or revocable living trust.  You can leave IJ a specific asset, a set dollar amount or a set fraction of your estate.  You could also leave IJ everything that is left over after planning for your family.  Including IJ in your will or trust will help IJ continue its fight to limit government and expand liberty in the years ahead.

These suggestions are for information only and are not intended to be legal, tax or accounting advice, or a substitute for such advice.  Please contact a qualified advisor such as your attorney, accountant or financial planner if you’re considering incorporating a gift to IJ into your tax planning.

Thanks so much, as always, for your support.  It’s only through your continued generosity that we’re able to stand toe-to-toe against and beat far-larger adversaries.

Beth Stevens is IJ’s development director.
