An easy way to benefit TFS or charities you care about is to make a partial beneficiary designation. This involves naming TFS as a beneficiary to life insurance, investment, or retirement accounts. For example, if you have two children you would like to inherit the majority of your assets if you were to pass away, but you also wish to support TFS with a gift, you may designate your beneficiaries as follows:
Child 1 – 49%
Child 2 – 49%
TFS – 2%
You may also decide to use this partial beneficiary strategy with only certain accounts. If you own a Roth IRA, a brokerage account, and a pre-tax IRA, it may be wise to focus on the pre-tax IRA for any charitable beneficiaries. Leaving pre-tax dollars to a qualified charity generally excludes income taxes due for the amount left to charity. This tax-free giving provides a unique opportunity for specific accounts such as pre-tax IRAs.
If you decide to name TFS as a partial beneficiary on your assets, please let us know so we can update our records and thank you for your generosity.
Please speak with a tax, legal or financial professional before making any changes to your personal situation. This information is being provided as informational material and should not be construed as a recommendation or advice.