Example of A Beneficiary Designation
Mr. Anderson has determined he probably won’t need all his 401(k) account for living expenses during his retirement years. He also feels that if in fact there ends up being some value left in the account once his life is over, he’d like Overlake to have a portion of what remains.
After speaking with his advisors, Mr. Anderson fills out a new beneficiary designation form naming Overlake Medical Center Foundation as the recipient of half the account upon his death, with various family members specified to receive the other half. As soon as the company that maintains his 401(k) receives the form, his gift arrangement is in place, although he can still revise things later depending on how his circumstances may change.
Whereas Mr. Anderson’s heirs will need to pay income tax on what they receive from the 401(k) account, the Foundation – as a tax-exempt entity – won’t pay any tax. Furthermore, his gift to the Foundation will produce additional tax savings if his level of wealth is large enough for estate taxes to apply.
If you have a question or wish to get in touch with someone at Overlake regarding a possible planned gift, please contact Stephanie Stewart, Director of Planned Giving, by email or at 425-688-5452.
The information on this website does not constitute legal, financial, tax, or estate planning advice and should not be relied upon as a substitute for such advice. Overlake encourages you to seek the counsel of your own professional advisors and values their involvement as you determine how you would like to proceed.