Your Will or Living Trust - only part of the picture

In order to distribute your assets, you will need a Will or Living Trust; otherwise, the state will determine who will get your most valuable possessions. Beneficiary designations are a simple and easy way to pass on your accounts without needing to specify them under your will or living trust.  Beneficiary designations control who gets all or part of the following assets:

  •  Retirement accounts
  •  Life Insurance Policy
  •  Bank accounts such as Certificates of Deposit and Savings Accounts
  •  Investment Accounts at brokerage companies
  •  Commercial Annuity Contracts
A key part of your planning

Uncertainty about how much money you may need to live comfortably in retirement might make you reluctant to part with assets now that you may need later. That’s understandable. But designating HopeHealth as a beneficiary is simple to do and can actually result in more of your assets going to your heirs.  Here’s why using a beneficiary designation may work for you and for HopeHealth.

Taxes can reduce what your heirs receive

Initial contributions to retirement accounts (IRAs, 401(k)s, 403(b)s are typically made pre-tax, so that you have never paid taxes on these funds. If you name your loved ones as beneficiaries of these accounts, the IRS will require them to pay income tax when they make withdrawals, potentially pushing them into a higher tax bracket. And if your estate is subject to estate tax, heirs could incur even more taxes, further eroding funds intended for them.  Making HopeHealth the beneficiary, though, counts as a charitable distribution under your estate and is therefore tax-exempt, freeing up other assets for your heirs, and allowing you to make a final gift to an organization that you care deeply about.

Your next steps

Updating beneficiary designations are usually pretty easy to accomplish. Your account administrator can provide one for you to complete and return, and often you can find the forms and submit them online. It’s that simple! Talk to your financial advisor to see if making a change like this would be beneficial for you.