Retirement Funds and Insurance Policies
Ways to Leave a Bequest Without a Will or Trust
Many charitable people wish to create a legacy for Meals On Wheels of San Francisco (MOWSF) but have no interest in writing a will or a trust. (These options can still be considered if one does have a will or a trust.) There are three ways that this can be achieved:
- name MOWSF as a beneficiary of a retirement fund
- name MOWSF as a beneficiary of an insurance policy, or
- name MOWSF as successor to your bank or investment account
Retirement Funds
You can create a legacy by naming MOWSF as a beneficiary or contingent beneficiary of an IRA, 401(k) Keogh account, or other retirement plan. When a retirement account is left to a charity, the organization does not pay the income tax otherwise due if left to a friend or family member. For very high net worth individuals, assets in these accounts may also be subject to taxes. You can make such a gift by completing a change of beneficiary form. There should be no fees involved, and it does not require any work on the part of an accountant or attorney.
Insurance Policies
Life insurance may be used to create a legacy by naming MOWSF as a beneficiary or contingent beneficiary of the policy. This requires that you complete a change of beneficiary form with the insurance company. You do not have to work with an attorney or accountant, nor are any fees involved to arrange such a gift. If you name MOWSF as a beneficiary, you can change your mind at any time by updating the change of beneficiary form.
Bank or Investment Accounts
You may name MOWSF as successor to your bank or investment account in most states. The arrangement is known as Transfer-on-Death/Payable-on-Death or TOD/POD. This requires that you complete a form directly with your financial institution. You do not have to work with an attorney or accountant, nor are any fees involved to arrange such a gift. TOD/POD gifts are completely revocable?you can change your mind at any time by filling out a new form.
