Beneficiary Designation of Retirement Accounts and Other Funds
Designating Emma Willard School as a beneficiary of all or a part of your qualified retirement plan or IRA is the most tax-efficient way to fund a charitable gift from your estate. Here’s why:
• Retirement assets are subject to both estate taxes from the decedent’s estate and then an income tax from the heirs who inherit the retirement assets. These two types of taxes can exceed 60%, leaving heirs with a fraction of the total retirement assets.
• Retirement assets left to Emma Willard School are not subject to either estate or income taxes. Accordingly, 100% of your gift is available to fund your legacy at Emma.
Contact your plan custodian and he or she will provide you with the beneficiary designation forms to name Emma Willard as the full or partial beneficiary of your retirement assets. During your lifetime, you will have total control of your retirement assets as the beneficiary designation does not take effect until your death.
Designate your bank account to be payable on death (POD) to Emma Willard School. There is no change in ownership or control of this account while you are living. The POD designation causes whatever funds remain in the account to go to Emma Willard School at your death.
BROKERAGE OR INVESTMENT ACCOUNTS
Designate your brokerage or investment account to be transferable on death (TOD) to Emma Willard School. You can choose to have all the account transferred to Emma Willard or designate percentages to pass to beneficiaries of your choosing. To set up the transfer on death endorsement, contact your investment advisor to provide the instructions.
For those donors who have created a Donor-Advised Fund (DAV) and supported us from grants from the DAV, we ask that you consider naming Emma Willard School as the beneficiary of your DAV. Your DAV administrator will provide you with the beneficiary designation form. Once signed, the DAV continues to operate as normal until the fund terminates, at which time the balance in the fund passes to Emma Willard School.
The information presented on these web pages is not offered as legal or tax advice. You are urged to seek the advice of your tax advisor, attorney, and/or financial planner to make certain any gift you are considering fits well in your specific circumstances.