The most common way to leave a gift at the end of your life is through a simple bequest in your will. But if the idea of a gift from your will conjures up visions of paperwork, attorney meetings and legalese, think again. It is quite simple to designate a portion of your estate to a cause you care about. Several kinds of assets can be designated for the community:
1. Retirement Plan
By designating a portion or all of your retirement plan for charitable purposes, you may decrease the tax burden on your family and increase the impact of your gift.
2. Life Insurance
By designating the Community Foundation as a partial or full beneficiary of an existing policy, you will retain ownership of the policy, but any policy proceeds distributed to the Community Foundation may be exempt from estate tax.
3. Cash and Bank Accounts
The liquidity and flexibility of cash make bank accounts one of the easiest assets to consider when it comes to estate planning. Cash is considered part of your taxable estate and may be subject to federal and state estate taxes.
4. Health Savings Account (HSA)
If you would like to continue to enjoy the tax-free compounding benefits of
an HSA, but want to ensure the balance does not become taxable income upon
death, consider naming the Community Foundation to receive the taxable income.
As always, a member of our development team is pleased to answer any questions you have, including those regarding charitable annuities, trusts, or other more complex planned gifts. You can contact us by calling 616.454.1751.