Life Insurance and Retirement
There are several simple ways to establish a special legacy through life insurance or retirement assets.
Contingent or Co-Beneficiary
You may name LACC Foundation as a contingent or co-beneficiary of your life insurance policy. As a contingent beneficiary, the LACC Foundation would receive the proceeds should the primary beneficiary pre-decease you. As a co-beneficiary, LACC Foundation would share the proceeds with your other designated beneficiary.
To do this, you should contact the insurance agency that issued the policy to formally name LACC Foundation as a beneficiary.
If you have a group-term life insurance policy provided by your employer, you may name LACC Foundation as a beneficiary of all or part of the policy. By naming LACC Foundation the irrevocable beneficiary, you may be able to save income taxes. Contact your employer’s benefits office to find out how to make your gift this way.
If you have a paid up life insurance policy that is no longer needed to protect your family, you may irrevocably assign that policy to LACC Foundation. You will be entitled to an income tax deduction in the year you make the gift (equal to the replacement value or cost basis of the policy, whichever is lower).
Retirement Assets and IRAs
You can designate the LACC Foundation as the beneficiary of your IRA or other retirement plan.
When LACC Foundation is the designated beneficiary, the proceeds of retirement plans go directly to the Foundation, avoiding both income and estate taxes to which other heirs are subject. This strategy can increase what your heirs will receive. If you have substantial assets in a retirement plan that may be subject to high taxes after your lifetime, you may wish to designate LACC Foundation as the beneficiary of the assets in that plan. By doing so you may be able to make an important gift to support the future of the Foundation, at very little cost to your family.
Your financial advisor or attorney, along with the LACC Foundation, can help find the right choice for you. For more information, contact Leigh Stenberg, 323-953-4011