The following should not be construed as financial or legal advice. Please contact your CPA or attorney regarding legacy gifts via a will or trust.
Retirement plans, such as IRAs or 401(k)s, are often one of the largest assets people own. They are also one of the most heavily taxed assets when passed on to heirs, other than the spouse of the owner. The retirement plan assets are included in one’s gross estate and heirs (including spouses) must pay income tax on any money withdrawn. Charities like the HRRA Foundation, however, pay no tax when they receive a gift of retirement assets, and those assets are also removed from the donor’s gross estate.
Naming the Foundation as a beneficiary of your retirement plan ensures that your desire to support home ownership is met and may leave available other assets, with more favorable tax-treatment, that can pass to heirs. Making a gift through your retirement plan is straightforward. Often, it involves nothing more than downloading a change of beneficiary form from the retirement plan administrator’s website, filling it out, and returning it to the plan administrator to make the change.
Life Insurance Policies
Life Insurance policies provide the peace of mind that your loved ones will have the resources they need after your passing. But what do you do with a policy that you no longer need? Much like a retirement account, changing or adding a beneficiary to a life insurance policy usually only requires completing a form from the life insurance company. You can choose to contribute all, or just a portion, of the proceeds to charity. This is a straightforward way to make a significant contribution to the HRRA Charitable Foundation. You can also donate a fully paid life insurance policy to the Foundation, which may result in a significant charitable tax deduction during your lifetime.