Qualified asset beneficiary designation
When potential donors name another person as the beneficiary of a qualified retirement investment (401(k), TSA, IRA, etc.), the asset will be exposed to income taxes, and depending upon their net worth, estate taxes. These taxes can greatly reduce the amount the beneficiaries actually receive. Instead of naming another person as the individual beneficiary, a donor can name the Foundation which is not required to pay taxes. By doing so, the donor’s estate receives a tax deduction at the donor’s death.
Beneficiary designations can be modified at any time to meet to meet your changing needs. Your assets may never reach your intended recipients if you've failed to keep the beneficiary designations up to date. Consider reviewing them every two to three years.
