We all want to make a difference. We all want to do the "right" things for our communities. We really DO want to provide financial support for all those great charitable causes. But those pesky excuses keep getting in the way. You know the ones I mean, and you have probably heard or used one or more of these recently: "I need to provide for myself and my spouse"; "I am not wealthy enough"; "The markets have not been kind to me"; "There is too much uncertainty in the world."

There is a way to overcome these "excuses" and follow through with your charitable intentions. It is an opportunity that applies to almost all of us. You can make a difference and help our community through careful planning with your qualified retirement accounts--401(k), IRA, 403(b), Keogh, Profit Sharing, Pension, etc. ("Retirement Accounts").

Like most people, you probably expect to use your Retirement Account for your own needs, and for the needs of your spouse, and usually don't consider the likely possibility that there will be amounts left over after you and your spouse have died. [I know we don't like to think about death, but in this case, perhaps we can do so in a more positive way.]

More and more people are discovering the pleasure of providing for a charitable bequest out of the amounts remaining in Retirement Accounts after death. Most often, this can involve the use of a resource that you hadn't really thought about all that much, and which can be directed to charitable purposes with little effort or complexity. Furthermore, the current income and estate tax laws make it an even more attractive alternative (as further explained below).

To help you with these considerations, let me point out a few important aspects of the use of Retirement Accounts as the source of charitable bequests (and for these purposes, I assume this distribution will only happen after both you and your spouse have died--or that you have no spouse).

These rules can be complicated, and you should consult with your own tax and legal advisors before utilizing any of the suggestions described in this article.

• Using a portion (or all) of your remaining Retirement Accounts to benefit your favorite charities at death can be accomplished through a rather simple beneficiary designation. For example: "$50,000 shall be distributed to [charity] and the balance shall be distributed to my children, equally."
  
  
• Any amounts in your Retirement Accounts that pass to beneficiaries after your death will be subject to both federal and state income tax (just as when you withdraw amounts for yourself).
• Amounts remaining in your Retirement Accounts at your death (if they don't pass to your spouse) will be included in your estate for estate tax purposes, and the estate tax rate could be as high as 50 percent (once you exceed certain exemption amounts). n As a result of the combined income and estate taxes, any Retirement Account balances that pass to your children can result in as much as 50-75 percent passing to the government in taxes, with your children only receiving 25-50 percent. In effect, for every dollar you leave to charity at your death, your family would only be paying 25-50 percent and the government would be paying the balance.
  
  
• Naming charity as the ultimate beneficiary of your Retirement Accounts does not affect the amounts or timing of the required distributions for you or your spouse while living. In addition, as long as the amount for charity is paid within a reasonable period after your death, any other beneficiaries (such as your children) can still elect to spread out the remaining distributions (and the income tax consequences) over a period of many years after your death.

So consider your own charitable inclinations and review your Retirement Accounts. You may find that this is a good opportunity for you to make a difference in spite of all the "excuses" that might otherwise get in the way.

Scott Blakesley is a partner in the law firm of Blackwell Sanders Peper Martin LLP. He may be reached at 816.983.8138 or by e-mail at sblakesley@Blackwellsanders.com.