Maximize Your Legacy By Naming a Charity As Beneficiary of Your Retirement Plans

     As you plan your estate, you will certainly want to leave as much as you can to those you leave behind.  If your goal is to make charitable gifts, you may want to consider gifting your retirement accounts to charity and leave other assets to your family.

     “Retirement accounts are usually the most tax-burdened asset, subject to both income and estate taxes,” said Mandy Hart, Associate Director of Development for Major and Planned Gifts at Shawnee State University.  “However, charities do not pay taxes.”

     According to Hart, most times it is better to name charities you want to support as beneficiaries of your retirement accounts rather than name them in your will.  

     “By leaving other assets to family and all or part of your retirement accounts to the charities you plan to support, you may be able to reduce the tax burden on your estate gifts and leave more to the ones you love.”

     “Through a simple beneficiary election form, you can name a charity (or multiple charities) as a beneficiary of your IRA or other retirement plans.  Your tax advisor can help you determine the most effective way to leave your legacy.”  Hart said.

     Anyone wanting additional information on making an estate gift to Shawnee State University can contact Hart at (740) 351-3364.