You’ve likely already worked with your advisors to establish an estate plan, including a will and perhaps even a trust. Still, this is a good time of year to review your plan in case things have changed.
you review your estate plan, consider whether your documents are aligned with
your philanthropic intentions, especially if you’ve captured your philanthropic
intentions through one or more funds at the Parkersburg Area Community Foundation (PACF). A fund at the
PACF can be an ideal recipient of estate gifts through a will
or trust, or through a beneficiary designation on a qualified retirement plan
or life insurance policy.
particular, bequests of qualified retirement plans can be extremely
tax-efficient. This is because charitable organizations such as the community
foundation are tax-exempt. This means the funds flowing directly to your fund
at the PACF from a retirement plan after your death will not be
reduced by income tax. This also means the assets will not be subject to estate
overlook life insurance, either. Not only are you able to designate the PACF or a fund at
the PACF as the beneficiary of a life insurance policy, but in
some cases you also may elect to transfer actual ownership of certain types of
policies. For example, if you were to make an irrevocable assignment of an
eligible whole life policy to your fund at the PACF, a
tax-deductible gift of the cash value of the policy occurs at the time of the
transfer. A gift like this could potentially ease your income tax burden,
especially if the Foundation continues to own the policy and you make annual
tax-deductible gifts to cover the premiums.
Parkersburg Area Community Foundation makes it easy for you to work with your advisor to draft
bequest terms in legal documents, including beneficiary designations of
retirement plans and life insurance policies. Please ask your advisor to
contact our team for the exact language that will ensure alignment with your
intentions. In many cases, anytime during your lifetime, you may even update
the terms of a fund at the community foundation that you've designated to
receive a bequest upon your death.
If you wish to leave a gift that costs nothing during your lifetime, but will forever benefit your charitable interest, consider including the PACF in your estate plans.