Beneficiary Designations as Planned Gifts
Retirement Plans: Today, many individuals’ portfolios are comprised largely of retirement plan assets, such as individual retirement accounts (IRAs). These retirement plan assets are among the most expensive for your family to inherit because they are subject not only to income taxes (state and federal) but may also be subject to estate and generation-skipping transfer taxes. These combined taxes can potentially erode the value of the IRA, leaving only 30% of the IRA’s value for the individual beneficiary.
If the beneficiary is a tax-exempt 501[C]3 organization, such as The Masonic Charity Foundation of Connecticut, however, 100% of the IRA’s value is preserved. Naming The Masonic Charity Foundation of Connecticut as beneficiary of your IRA is very simple. Please request a beneficiary designation form from the financial institution that manages your retirement plan, and include the following information:
- Legal name: The Masonic Charity Foundation of Connecticut, Inc.
- Federal Tax Identification Number: 06-1435920
Gifts of Life Insurance: Gifting a paid-up life insurance policy is one of the easiest and most cost-effective ways to support The Masonic Charity Foundation of Connecticut. Perhaps you have a policy that was originally purchased to protect a loved one who passed away or who no longer requires financial assistance. Or maybe, your policy was intended to provide for emergency funds that are now available from other assets. By naming The Foundation as the beneficiary of your paid-up policy, you will be making a future gift to The Foundation and will be entitled to an income tax deduction equal to the value of the policy. This change of beneficiary can be made quite simply by contacting your insurance carrier and requesting a beneficiary change form. This form will typically ask you to provide the name and federal tax identification number of the new beneficiary, in this case, The Masonic Charity Foundation of Connecticut. (Note legal name and ID number listed above.)
