Charitable Bequests Without Changing Your Will

We encourage all our friends to review their wills this year, or to have their wills made, and to consider adding a bequest to the worthwhile organizations they support. But even if you do not need to make or change your will, that doesn’t mean that you can’t include a charitable bequest in your estate plans. Each of the following ideas allows you to continue your lifetime of support without a codicil (amendment) or a new will, and each provides your estate with a charitable deduction.

Financial Accounts. People who have financial accounts at banks, savings and loan associations and credit unions generally may direct that their deposits (checking, savings, certificates of deposit) be paid on death to a particular individual – or to a qualified organization. The designation can be revoked any time prior to death and in no way affects the depositor’s control over the funds in the account.

Brokerage Accounts. If you have stocks, bonds or mutual fund shares in brokerage accounts, it is possible to name us as “TOD” (transfer on death) beneficiary. You would maintain full control over the account during life.

Beneficiary Designations. Almost any arrangement that provides for a death beneficiary can be made payable to charitable organizations. Benefits from a 401(k) plan or Individual Retirement Account (IRA) often result in income taxes for the beneficiary. Because we are tax exempt, it may make sense to name us as death beneficiary and bequeath other assets, not burdened with income tax, to private beneficiaries.

Life Insurance. One of the easiest and most cost-effective ways to include us in your estate plans is through life insurance. For example, you might make us the beneficiary of a policy that is no longer needed for family security. Simply ask the insurance company for the forms necessary to change the beneficiary or to transfer ownership of the policy.


<Back

Copyright © 2007 by R&R Newkirk. All rights reserved.

Print this page