Many don’t realize that retirement plans, IRAs, life insurance, donor advised funds and commercial annuities are not affected by a will. These accounts are dispersed according to beneficiary designations. The forms are often easier to update than a will, making them simple ways to leave a legacy.
Making Ronald McDonald House Charities Bay Area the beneficiary of your retirement plan assets, IRA, life insurance or commercial annuities is easy:
Keeping Designations Up to Date
Beneficiary designations can be modified at any time. Experts suggest reviewing them every two to three years when reviewing your overall estate plan. This way you can ensure your assets reach the intended recipient(s), even as your needs change.
Jordan would like to leave Ronald McDonald House Charities Bay Area a gift after passing, but would also like to leave something for a family member, Pat. Jordan is trying to decide where a $100,000 IRA should go. Naming RMHC Bay Area as the beneficiary for 100 percent means we would receive the entire $100,000 to help fulfill our mission. By comparison, if Jordan leaves the IRA to Pat, a sizable amount of the IRA would be subject to income taxes.
|The value of Jordan’s IRA at death is $100,000.|
|Chosen Beneficiary||Pat||RMHC Bay Area|
|Federal income taxes
(assumes a 24 percent marginal income tax bracket)
|Net amount to beneficiary||$76,000||$100,000|
To learn more about the advantages of designating Ronald McDonald House Charities Bay Area as beneficiary of your retirement plan assets, life insurance, donor advised fund or commercial annuities, or to learn more about changing your designations, please contact Ronald McDonald House Charities Bay Area today.