Using a Beneficiary Designation to Make a Gift to Charity
Joanne: Bob and I were always committed to our faith. We served in the Church for many years and I'm still in the Altar Society. After Bob 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 Bob'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 some nice gifts for her grandkids.
Joanne: I had originally thought about leaving my IRA to our children. My attorney suggested a different strategy and told me that an IRA is a great gift to leave to charity, and he knew how much I loved our parish. He explained that if my kids inherited the IRA, my estate would pay estate taxes and my children would pay income tax on the IRA. But, by giving the IRA to charity and other assets to my kids, they 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 the Catholic Foundation of Eastern Montana as the primary beneficiary of my IRA (partially for the Priest Retirement Endowment and partly for our parish's endowment) and mailed it back to the custodian. I called the Catholic Foundation of Eastern Montana to tell them about my gift, and they were very touched. I know Bob 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 to benefit the Church forever!
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 the Catholic Foundation of Eastern Montana as the primary beneficiary of my IRA (partially for the Priest Retirement Endowment and partly for our parish's endowment) and mailed it back to the custodian. I called the Catholic Foundation of Eastern Montana to tell them about my gift, and they were very touched. I know Bob 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 to benefit the Church forever!
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 our organization 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.
