Continue supporting our mission even after your lifetime by naming us as beneficiary of your retirement plan, life insurance or insurance annuity assets.
The beneficiaries of the following assets can be modified at any time in your will to meet your changing needs:
- IRAs and retirement plans
- Life insurance policies
- Insurance annuities
Life Insurance Policy Beneficiaries – Life insurance is a popular method of providing much-needed funds to a beneficiary at your death. Life insurance proceeds are almost always income tax–free to the beneficiary. The beneficiary designation in your life insurance policy determines where the proceeds will be distributed. The death proceeds, therefore, are not typically transferred through your will. Life insurance can be distributed to a charitable organization such as the Anne Carlsen Center if we are named as a beneficiary of the policy at the time of your death.
Insurance Annuity Beneficiaries – Insurance annuities, unlike life insurance, carry an income tax burden. Your named beneficiary is responsible for paying the income tax due on the growth of the annuity while you owned it. The tax burden makes these assets a popular choice to leave to a non-profit organization like the Anne Carlsen because as the recipient we can eliminate the tax bill associated with this annuity.
To name or change a beneficiary, simply contact the administrator of the IRA, retirement plan, or your insurance agent for a change of beneficiary form. If you would like to name the Anne Carlsen Center as beneficiary, simply decide what percentage of the plan’s value (0–100 percent) you would like us to receive and name us, along with the stated percentage, on the beneficiary form. Then return the form to the administrator of the plan.
Profile of A Giver of This Gift
- You want to support the Anne Carlsen Center after your lifetime.
- You want to avoid paying costly income taxes
- You want to get the full value out of your investments
- You want to support the Anne Carlsen Center while also supporting your family as your lifetime.
Is This Gift Right For You?
Most retirement plans, including 401(k)s and IRAs, are income tax–deferred, meaning that income tax is not paid until the funds are distributed to you in life, or upon your death. This taxation makes retirement assets among the most costly assets to distribute to loved ones after your lifetime.
Because they are subject to income taxes to your beneficiaries, retirement assets make ideal gifts to tax-exempt non-profit organizations such as the Anne Carlsen Center. Otherwise, the income taxes on retirement assets you leave to your loved ones can be as high as 35 percent.
On the other hand, the naming of a non-profit as the beneficiary of retirement assets upon death generates no income taxes. The charity is tax-exempt and eligible to receive the full amount and bypass any income taxes. This means that the Anne Carlsen Center would receive the entire lump sum compared to as low as 65 percent of the original total amount invested.
Benefits of This Gift
- You provide the Anne Carlsen Center with support after your liftime.
- You avoid paying costly income taxes on your investments.
- You can determine the percentage in which you want to donate, and leave the rest to your family or loved ones.
- The non-profit organization you choose, such as the Anne Carlsen Center, receives the full amount of your investments compared to your other beneficiaries receiving as low as 65 percent of the investment.
How to Make This Gift
Naming individuals and charities that will receive your assets once you are gone can be a simple process. Most assets can pass to your intended beneficiaries just by the terms of your will. The other assets mentioned here, such as retirement plans, life insurance and insurance annuities, however, are not controlled by the terms of your will. These assets instead require separate beneficiary forms. Consulting an estate planning attorney is a smart investment that can save you and your family money and heartache in the long run. Please seek legal advice before deciding who will get what in your estate plan, but please do keep the Anne Carlsen Center in mind when seeking legal advice about estate planning.
For More Information
We understand these gifts are complicated, that’s why we would be happy to work with you and your advisors to discuss a potential gift that meets your financial goals while also supporting our mission. You are not alone in making these life-impacting decisions. Please contact the Anne Carlsen Center Foundation at 1-800-568-5175 to help you answer any questions you may have or to futher discuss your giving options.
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The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.
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