You can name Touched by Grace as a beneficiary of a life insurance policy, individual retirement account, or qualified retirement plan such as a 401(k), 403(b), Keogh, or profit sharing plan. To do this, request a beneficiary designation form from the company issuing the policy or plan and fill it out according to your wishes.
A gift to Touched by Grace through beneficiary designations has several benefits:
- By donating a life insurance policy that you no longer need, you can make a significant gift at little cost to you.
- On a policy that is not yet paid up, in some cases, you can deduct the premium payments that you are making on this policy to receive an income tax deduction for the value of the policy.
- Retirement plans are often the most heavily taxed assets in your estate. Most of the taxes can be avoided if the plan balance is given to a charity.
- If you intend to give some assets to your children or other individuals and some to a charity, consider making the charitable gift from the balance remaining in the qualified plan. The charity will not owe income tax upon receipt of the gift, whereas designated individuals will, and your estate will receive an estate tax deduction equal to the value of the plan balance given.
For more information about these giving options, please contact the administrative offices of Touched by Grace at email@example.com or by phone at 615-332-9152.