Giving wisely.

• Author: Hammond, John
• Position: Brief article

As CLF members, we all care deeply about the work CLF does - some of us so much so that we choose to leave a lasting legacy to the environment by including CLF in our estate plans. Suppose you want to do just that and, at the same time, treat your heirs well. Which assets should go to your heirs and which to CLF? Here's an idea that benefits you, your heirs, and CLF.

It may be tempting to leave your retirement assets (IRA, 401K, Keogh, etc.) to your heirs and leave cash to CLF After all, pension distributions can potentially provide a lifetime income to your heirs. As thoughtful as this is, it is a poor choice as it leaves your heirs with a substantial built-in tax liability - sometimes as high as 35%. It's much better to leave them most other assets (cash, stocks, real estate, etc.) that come with no built-in tax liability. Your heirs can invest these any way they want, knowing that the tax meter starts at zero.

Leaving your retirement assets to CLF, on the other hand, is a...