A Planned Giving Tip – Simple Gifts from Your
Estate
John Shostak
Creative donors have found exciting ways to
provide for our future, many of which may not
have occurred to you. This article focuses on
simple, satisfying ideas for making gifts
through your estate plan — without changing your
will or living trust. These gifts generally
avoid probate and may also save income taxes on
your estate.
Gifts from Financial Accounts
Generally speaking, it’s possible to pass bank
account proceeds to an organization such as ours
without making or changing a will. You should
ask the account manager of your bank what
procedure would be appropriate for naming us as
the beneficiary of your account. You can name a
beneficiary for almost any financial account:
savings, checking, CD, S&L, Credit Union, etc.
and you keep the right to change or revoke the
beneficiary designation at any time.
Gifts of Retirement Benefits
Charitable organizations like ours generally can
be named as beneficiaries of retirement savings
plans. So friends of Farm Bureau who participate
in pension plans, IRAs, 401(k) plans, Keogh
plans and other qualified retirement savings
plans have an opportunity to make important
gifts through simple beneficiary designations.
Naming us as beneficiary also may be good tax
planning. Income taxes and estate taxes that may
come due are wholly avoided. You can name us as
beneficiary of part or all of your account
simply by requesting a form from the custodian.
Note: Married persons will need a spousal
consent form if they wish to name anyone other
than the spouse as beneficiary of a qualified
retirement plan. This requirement does not apply
to IRAs.
Life Insurance Beneficiary
Life insurance, in addition to providing family
protection and peace of mind, offers a multitude
of other benefits, including significant help
for our programs.
You can keep lifetime ownership rights in a
policy (the right to cash it in, for example)
but name us as beneficiary. Your estate will be
entitled to a charitable deduction for the
proceeds passing to us. If you prefer, you can
name us contingent beneficiary of a life
insurance policy. We would receive the proceeds
only if your primary beneficiary pre-deceases
you. Or you can make us the co-beneficiary and
share insurance proceeds others.
Revocable Gifts
Donors sometimes like to place money with a
charitable organization on a revocable basis.
The charity uses the interest the funds produce.
The donor can always reclaim the funds if the
need arises. As a technical matter, this
arrangement amounts to an interest-free loan,
repayable on demand.
This type of revocable gift eventually provides
significant tax relief if the donor makes the
“loan” self-canceling entitling the donor’s
estate to a charitable deduction for any amount
passing for our benefit
Securities Can Be Transferred
Securities that are being held for you in a
brokerage account can be transferred to us. Your
broker can provide you with simple forms on
which you can name us as beneficiary.
Securities transferred from your estate for our
benefit will be free of income taxes and federal
estate taxes and will pass outside probate, as
well.
For More Information
Are any of the ideas we provided of interest to
you? If so, we would be pleased to hear any
questions you might have. We would also be
extremely gratified if you would notify our
office when you decide to include us in your
estate plans. Knowing of your plans is important
in framing our own plans for the future. All
communications will be held in strict
confidence.
If you have any questions about making a
financial or in-kind gift to the Kansas Farm
Bureau Foundation for Agriculture and/or the
Kansas Farm Bureau Legal Foundation, please
contact me, at 785-587-6608 or email me at
shostakj@kfb.org.
