Naming the Gift Fund in an Estate Plan

For individuals and their heirs who are philanthropic, there are several unique ways to leave a charitable legacy when the Gift Fund is part of an estate plan — in a will or as a beneficiary for a qualified retirement plan, life insurance policy, or charitable trust, including both Charitable Remainder and Charitable Lead Trusts.

If an individual is considering making charitable giving part of their estate plan, they should consult with their tax and estate planning advisor regarding modifications to their will.

Bequests to the Gift Fund

Charitable bequests are a great way for individuals to continue to support the causes that are important to them beyond their lifetime.

To do this, they can state in their will a specific amount of money, a percentage of their estate, or specific assets or real estate¹ they wish to bequeath to the Gift Fund.

Language for bequests to be used when writing wills (PDF)

A charitable bequest can reduce — or even eliminate — the estate tax burden. The charitable bequest will generally be allowed as a deduction in determining the net value of the taxable estate, and no limitations are imposed on the total amount that can be deducted.

Beneficiary of a qualified retirement plan or life insurance policy

An individual's retirement savings plan or life insurance may be their largest asset. Many do not realize that the remaining qualified retirement plan assets could be heavily taxed after their death. Estate and income taxes can consume a portion of the remaining money in tax-deferred accounts such as Individual Retirement Accounts (IRAs) and other qualified retirement plans.

Proceeds from a life insurance policy are also subject to estate taxes, if owned by the individual at the time of their death.

To move assets out of a potentially high-tax situation into one which has the potential to result in a significant tax savings, individuals can name the Gift Fund as the beneficiary of:

• An individual retirement account (IRA)
• A 401(k) or other qualified retirement plan
• A life insurance policy

They can designate the Gift Fund as the sole beneficiary, or one of multiple beneficiaries, of the remaining assets.

Language for IRAs, 401(k)s, and other qualified plans (PDF)

For a life insurance policy, contact your life insurance provider to add the Gift Fund as a beneficiary.

Beneficiary of a charitable trust (CRT and CLT)

Individuals who have established or wish to establish a Charitable Remainder or Charitable Lead Trust may name the Gift Fund as the charitable beneficiary.

If they have an existing charitable trust to benefit a different charitable organization, it may have been drafted to allow the charitable beneficiary to be changed, allowing them to add or substitute the Gift Fund. This can provide the flexibility to support a variety of charities beyond the term of the trust.

Language for distribution from a trust (PDF)