QCDs: A powerful part of your legacy at WashU

By Barbara Northcott

Retirement offers a meaningful opportunity to shape the legacy you want to leave, and a qualified charitable distribution (QCD) can be a powerful part of that plan. Many donors make QCDs a regular part of their annual financial and philanthropic planning. Because QCD funds move directly from your individual retirement account to a charity, the process is straightforward.

If you are age 70.5 or older, a QCD lets you support the charities you care about without affecting your cash flow. As your financial priorities evolve, QCDs can play an even larger role. For those age 73 or older, a QCD can satisfy your required minimum distribution, helping you to meet withdrawal requirements while reducing your taxable income.

Expanding on these benefits, a 2022 law known as the SECURE Act 2.0 offers an additional opportunity: a one-time, per-person QCD of up to $55,000 to fund a charitable remainder unitrust (CRUT), a charitable remainder annuity trust (CRAT), or a charitable gift annuity (CGA).

WashU graduates Marilyn Margulis, AB ’69, and Max Margulis, JD ’69, recently used this one-time option to create their CGA. Inspired by the work of Karen Tokarz, the Charles Nagel Professor of Public Interest Law & Policy, they designated their gift to support the clinical program at Washington University School of Law. As director of the Community Justice & Mediation Clinic, Tokarz provides free mediations in St. Louis housing courts and unique learning opportunities for WashU Law students through the St. Louis Mediation Project. Students gain classroom and courtroom training in mediation, negotiation, and litigation; shadow professional mediators; and even mediate cases themselves under attorney supervision. Their work supports the community while preparing the students for professional legal practice. Donors like Marilyn and Max recognize QCDs for their simplicity and tax advantages but most of all for their meaningful impact. Their gift supports a program that benefits both the university and the St. Louis community.

If you would like to explore how a QCD could fit into your plans, speak with your financial adviser and reach out to WashU’s Office of Planned Giving. We’re here to help.

You planned for your future. This year you can help shape someone else’s.