Certain types of property pass outside of a will or trust. These assets require that you name a beneficiary by completing a beneficiary designation form. To make a bequest of these assets you should contact the company or entity from which you purchased the asset. Below are a couple of examples:
Bequest of an IRA
A retirement asset like an IRA account makes an excellent bequest to charity. If the IRA were given to your family, much of the value would be depleted through estate and income taxes. By designating the Texas A&M Foundation as the beneficiary of part or all of your IRA, the full value of the gift is transferred tax-free at your death and your estate receives a charitable deduction. If you wish to leave your IRA to your spouse at your death, you may also designate the Texas A&M Foundation as the secondary beneficiary of your account. Contact your IRA or retirement account custodian to obtain a beneficiary designation form and make a bequest from your IRA.
Bequest of Insurance Policy
An insurance policy can make a nice gift for Texas A&M. As an asset of your estate, an insurance policy is taxable at your death. However, if the policy is gifted to charity, your estate avoids paying tax on the value of the policy and receives a charitable deduction for the gift. Contact your insurance company to obtain a beneficiary designation form and make a bequest of your policy to the Texas A&M Foundation.
Does any of this confuse you? These issues confuse many people, and that’s a prime reason why too many put off writing a will. IT is intimidating to some folks to set an appointment with an attorney and to discuss unfamiliar topics.
Fortunately, you have the Texas A&M Foundation Gift Planning team. They can take the confusion out of bequests. The Gift Planning team is ready to personally assist in answering any questions you may have and provide information to help you along the planning process.