Using a Beneficiary Designation to Make a Gift
Joanne: Hal and I were passionate about giving back to our community. We even volunteered regularly for different causes and organizations. After Hal passed away, I wanted to make a gift that would honor his memory.
When she met with her attorney, Joanne explained her goals and described her assets. She'd inherited Hal's IRA, which when combined with her own, would provide her with the necessary retirement security she needed. She even had enough to allow her to take regular vacations and splurge on gifts for the grandkids.
Joanne: I had originally thought about leaving my IRA to our kids and other assets to charity. My attorney suggested a different strategy and told me that an IRA is a great gift to leave to charity. He explained that if my kids inherited the IRA, my estate would pay estate taxes and my kids would pay income tax on the IRA. But, by using the IRA to support my Community Foundation charitable giving fund and leaving other assets to my kids, the kids will still receive a nice inheritance, and we avoid income and estate taxes entirely!
Joanne: Making a gift of my IRA was easy! I contacted my IRA custodian, who emailed me an IRA beneficiary designation form. I completed the form, named my charitable giving fund at the Community Foundation of Greater Des Moines as the primary beneficiary of my IRA and mailed it back to the custodian. I know Hal would be happy too. Best of all, I can continue to use my IRA for as long as I live, and when I pass away, my IRA will go towards the causes that Hal and I have been passionate about supporting.
Joanne: Making a gift of my IRA was easy! I contacted my IRA custodian, who emailed me an IRA beneficiary designation form. I completed the form, named my charitable giving fund at the Community Foundation of Greater Des Moines as the primary beneficiary of my IRA and mailed it back to the custodian. I know Hal would be happy too. Best of all, I can continue to use my IRA for as long as I live, and when I pass away, my IRA will go towards the causes that Hal and I have been passionate about supporting.
Is a beneficiary designation gift right for you?
If you own a qualified retirement plan, such as an IRA, 401(k) or 403(b) and would like to make a charitable gift, your family or your estate might benefit if you update your beneficiary designation form naming your charitable giving fund at the Community Foundation as a beneficiary. Beneficiary designation gifts may help your heirs avoid paying income tax on certain inherited assets and may help your estate avoid estate taxes.
If you have questions about making a beneficiary designation gift, please contact us. We would be happy to work with you and answer any questions that you have.
*Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since the benefits of each gift may be different, you should seek the advice of your legal, tax or financial advisor.
