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Although many people think of a will as the easiest way to transfer assets after their lifetime, it doesn't cover everything. In fact, retirement plans, IRAs, life insurance and commercial annuities are not controlled by the terms of your will, but instead use separate beneficiary forms to determine who receives them. This makes them an effective and easy way to leave a legacy.
A retirement plan or IRA is typically the largest source of assets that generate taxable income when paid to a beneficiary. More than half of your retirement plan assets could be subject to income and estate taxes. Therefore, if you are considering a gift to TMHA after your lifetime, it is usually better to leave taxable assets to us and give non-taxable assets (such as stocks and real estate) to your loved ones.
To complete your gift, simply contact your retirement plan or IRA administrator and complete a beneficiary designation form naming TMHA as beneficiary and the percentage you'd like us to receive. Then mail it back to the plan administrator and keep a copy for your records. Beneficiary forms are filled out on your terms and can be changed at any time.
If you are over 70 years old and have one or more IRAs, the law stipulates that you must take Required Minimum Distributions (RMDs)—and then pay taxes on that money. If you do not count on these RMDs for your annual budget, you can arrange for Qualified Charitable Distributions to be paid directly to TMHA. You will avoid the problem of unwanted income tax while supporting one of our many wonderful programs.