Lasting value
Helen Shuman partnered with her community foundation to turn 100 acres of property into Shuman Foundation for the Environment, a supporting organization that will benefit the environment for years to come.
Read the story>>Name a charitable beneficiary for retirement assets
Naming Placer Community Foundation as a beneficiary of your retirement plan is not only easy to do, it is also a way to make a significant and lasting gift to our community that may not be possible during your lifetime. After years of deliberate savings and investment, retirees have more money in their retirement accounts than they need. Retirement assets could be taxed at high rates upon your death, as they are subject to both estate taxes and income taxes. For these reasons, many advisors recommend retirement assets as the first to be designated for charitable purposes.
Charitable beneficiary designation
When you designate the Foundation as a beneficiary of your retirement plan, you donate a portion of your retirement assets to community good. Upon your death, retirement assets that you have not used will become a charitable fund to support local services and programs meeting needs in Placer County.
Why designate retirement assets for charity
If you are concerned with potentially high estate taxes, the charitable beneficiary designation is a good choice because the benefit payment is generally excluded from your estate for tax purposes. Because you may change the beneficiary designation at any time, your decision is revocable.
For a taxable estate over $3 million, the combination of estate and income taxes will frequently exceed 75 percent of the total amount—even more if the generation-skipping transfer taxes are triggered. By designating the Foundation as the beneficiary, you could apply 100 percent of the assets to a named charitable fund to accomplish your specific charitable objectives, at a cost to your heirs of only 25 percent of the fair market value of this type of assets.
How to designate a retirement plan beneficiary
You can designate the Foundation as a beneficiary of your retirement plan, whether it is a 401(k), 403(b), IRA (individual retirement account), or other qualified retirement program. Although your retirement plan beneficiary form overrides your will, it is important that both documents are up-to-date and consistent.
Are you hoping to put your retirement assets to work for the community? We can work in tandem with your financial advisor to help you achieve your goals. Learn how.