Life Insurance & Retirement Assets
You make a bequest to the Foundation of your Life Insurance Policy and Retirement Assets such as IRA, 401k, 403b, pension or other tax deferred plan.
Life Insurance & Retirement Assets Video
What's the Need?
- You have a paid-up life insurance policy where no one needs the proceeds.
- You want to make gifts to your family and the Foundation and avoid taxing your heirs and estate. Note: If you give your retirement plan assets to your children 60-65% may be taxed.
- You want to provide a large gift that would benefit the Foundation but also make sure that your heirs benefit as well.
What's the Solution?
- You can designate the Foundation as the beneficiary of your life insurance policy or high-tax retirement plan assets. With this, you could give your heirs your low-tax assets that step up in basis at death.
- Tax Savings
- Your family avoids additional income tax.
- If you have a taxable estate, it could enjoy estate tax savings.
- For Life Insurance Policy, proceeds distributed to the Foundation are exempt from estate tax. This would benefit your heirs as well.
- Preserves Lifetime Use
- You may continue to take withdrawals from your retirement accounts during your lifetime.