Beneficiary Designations of Retirement Plans
and IRAs
Retirement accounts, which include pension
plans, profit sharing plans, stock bonus plans,
Keogh Plans, 401(K) plans and Individual
Retirement Accounts (IRAs), generate a number of
tax consequences at the time of death of the
owner. These tax consequences make qualified
retirement assets and IRAs appropriate as
charitable giving vehicles.
Bequest or Devise is a gift provided for in a
person’s will.
Gift of Life Insurance is designation of a
charitable organization as beneficiary of an
insurance policy; assignment of ownership of a
policy to charity; or gift to charity of a
partial interest in the party.
Life Estate Contract is a contract that
provides for a donor to transfer title to his
home or family farm to a charity, reserving for
himself the right to live in and on the property
and receive all the income created by the
property during his life. At his death, the home
or farm becomes the property of the charitable
organization.
Payable on Death Deposit Account
is a
specific type of bank account allowed in most
states which is payable on request to one person
during lifetime and on his death to tone or more
P.O.D. payees, or to one or more persons during
their lifetimes and on the death of all of them,
to one or more payees.
Qualified Terminable Interest Property Trust
is a product of the ERTA of 1981. This trust
must pay all income to the surviving spouse for
life and pass the remaining trust principal to a
designated beneficiary (which may be a charity)
at the death of a surviving spouse.
Revocable Living Trust is a flexible
revocable agreement whereby a donor transfers
income-producing property, of almost any kind,
to a trustee and receives an income for a period
of years or for life and whatever remains in the
trust at his death becomes the property of the
beneficiaries of the trust.
More information about making a planned gift can
be found at the website of Leave a Legacy
Arkansas at
www.leavealegacyarkansas.org.
