Using the Tax Controlled Savings Plan to Leverage Your Legacy

Imagine knowing that your ReHirement is fully funded from your tax free bucket or through a combination of your currently taxable and tax free buckets.

Not only are you free from worries about future tax rate hikes and certain that you have enough in savings to fund your living expenses through death, you are also free to leverage your stewardship legacy by strategic giving from your before tax bucket.

The wise, patient application of BRS’s TCSP is how you get there.

There are a variety of different strategies for leveraging your legacy using before tax savings, and each depends on the client’s particular facts.

One strategy is to make current gifts from your before tax bucket and utilize distributions or Required Minimum Distributions (RMDs) to fund life a second to die life insurance policy on a husband and wife in an Irrevocable Life Insurance Trust (ILIT) for your heirs.

The proceeds from the policy in the ILIT will go to your heirs income and estate tax-free.

 

This allows you to do your “giving while you’re living so you’re knowing where it’s going” and at the same time know that you are replacing or even multiplying the wealth transferred to charity with the life insurance.

When you pass away, the remainder in your before tax bucket can be giving to charity. Those funds never incur any tax burden related to the Income with Respect to Decedent Tax (IRDT), gift, or estate tax (if you have a taxable estate).

Furthermore, you enjoy knowing that you have been a good steward by efficiently utilizing the tax code to allow you to take charitable contribution deductions using pre-tax money and at the same time the  And the great thing about it is that the money has never paid tax (except for any RMDs or withdrawals used to fund the ILIT).


We at BRS believe stewardship is about relationships. Careers, reputation, financial stability, and personal goals are all important pursuits. However, none should come above our relationships with family, friends, and our community. Our relationships are the cornerstone by which we leave a positive impact and lasting legacy.

Put Relationships First