Welcome to Legacy
Winter 2005

Inside This Issue

It All Started at Pearl Harbor

Will Making: Easy as 1-2-3

Erasing a "Tax Curse"

Review Your Beneficiary Designations

Mission Statement

The American Red Cross, a humanitarian organization led by volunteers and guided by its Congressional Charter and the Fundamental principles of the International Red Cross Movement, will provide relief to victims of disaster and help prevent, prepare for and respond to emergencies.

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Erasing a "Tax Curse"

Disaster Relief
Certain kinds of property carry around a "tax curse." Whoever receives such property from an estate may have to pay income taxes on their inheritance (in addition to any estate taxes due). Examples of tax-burdened property include U.S. savings bonds, accounts receivable of a business owner, installment sale contracts with payments remaining, deferred compensation and death benefits from retirement savings plans, including IRAs.

Choosing tax-burdened property to leave to the American Red Cross means no one has to pay income taxes. It's even possible to leave property to charity and reserve lifetime income to a family member from the gift property. Such an arrangement also can save federal estate taxes, ultimately leaving your heirs better off because you provided for a worthwhile cause.

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© Copyright 2005 The American National Red Cross. All Rights Reserved.

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