Planning Ahead: Naming Charitable Beneficiaries

Making sure our financial houses are in order is a priority for most of us.  It’s normal to assume, and to act as if we will always be around, but now is the time to consider how you, your spouse and family can continue to support, after your passing, the local charities and foundations you have given to during your lifetime, or want to support afterwards.   

In this blog, I’d like to talk with you about how those local charities and foundations may be designated as beneficiaries of insurance, brokerage and non-retirement accounts as secondary beneficiaries; these are also called Transfer on Death (TOD) designations.  

Our spouses are usually designated as our primary beneficiaries and inherit communal assets without tax implications.  After the passing of the surviving spouse, the secondary beneficiaries inherit.  Certain assets to secondary beneficiaries bypass probate and are immediately transferred after death documentation is presented.  

By using beneficiary designation forms, you and your spouse can declare your intent for some parts of your estate without a lawyer. And yes, you can change these plans later on as your circumstances change. Designation forms are available on most investment and insurance websites and generally do not need to be witnessed or notarized.

        You can do it today, from your home. Just in case. 

Life Insurance Policies: Life insurance policies allow you to choose multiple beneficiaries and what percentage of funds should go to each – 100% to a charity(s), or 80% to your family and 20% to charity, or any combination you’d like.  Naming a charity as a beneficiary is simple:  you write in the charity name(s) on your beneficiary designation form.

Non-Retirement, Brokerage and Bank Accounts: As with life insurance policies, you may designate multiple beneficiaries and specify the percentages of funds to charities you wish to receive support after your passing.  If you are married at the time of death your spouse will most likely be the primary beneficiary of these funds, even if other beneficiaries are named, but a TOD designation will provide a transfer to secondary beneficiaries upon the surviving spouse’s passing.  Banks may also ask you to designate beneficiaries for the accounts you maintain with them. 

Tax laws around Individual Retirement Accounts (IRAs) and other retirement instruments are complicated and may be taxed at inheritance.  I’m not going to write about them here, but I do want to point out that unless this is a critical part of your inheritance, speak to your tax advisor about donating these to a nonprofit organization. 

It’s important to keep copies of the beneficiary verification documents you receive from your insurance company and financial institutions.  It is also a good idea to notify intended charitable beneficiaries of your intent. 

You may choose to designate Pacific Community Foundation (SPCCF) 

as a beneficiary.  We would be happy to work with you to create your personal

giving plan.  

When your donation comes to us as a named beneficiary, we do our best to fulfill your intentions, if we know what those intentions are. If you have not indicated a specific intent for your disbursement beforehand, we will place your gift in our endowed Community Fund.

Peace of mind is knowing that local organizations you supported during your lifetime will receive continued support after you are gone.  

DISCLAIMER:  As always, we suggest that you speak with your financial or legal advisor before making significant changes to your estate planning.  None of the information discussed here is given in lieu of conferring with a professional investment manager, estate planner, or attorney. 

Kathleen Sayce, with editorial help from Marcia Scholl, photo by Jerry Macy

Thank you from St Vincent de Paul, Seaview

Hello, I'm Elizabeth Flanders, President of St Vincent De Paul in Seaview. 

I want to thank Pacific Community Foundation’s donors for your generosity during this life-changing pandemic.  I’d like to share with you how support from the Community Relief Fund helped three families impacted by the pandemic.

A family of four with two preschool children fell behind on their rent during the first few months of the pandemic. They called our hot line and left a message. They didn’t have a phone, so it took us four attempts to connect. When we finally met, we discerned their needs:  We paid their rent, bought them a phone, and gave them a voucher for Reach Out Thrift Store for clothing. The father expects to find work soon, as local businesses open up.

Another family of five was caught without rent money when the father was injured at work in the oyster beds. He could not use his hands without pain. The mother is a baker and very pregnant, so also wasn’t working. We paid rent and utilities to help them weather this temporary set back. Their new baby will arrive soon. 

A third family of five didn’t have money for utility bills. Both parents lost their steady jobs due to the pandemic, and what intermittent work they could find was not enough to cover all the bills. We paid their utility bills to help them catch up. 

These are three hard-working, strong young families who are able to stay in their homes thanks to your generosity. On their behalf, we thank those of you who donated to the emergency relief fund. We wish each of you could see the relief and gratitude in their faces.

We at St. Vincent de Paul received grants from the Community Emergency Relief Fund donations. We are a small group of elders who have worked out of St. Mary’s Church, Seaview since 1994. Our mission is to seek, find and serve the vulnerable and forgotten. One of our programs is an emergency hot line. We help with rent, utilities, food, medicines, gas, clothes for work, etc. We help most everyone who calls. We neither judge nor require red tape.

Elizabeth Flanders, President, St. Vincent de Paul.

This is one of several organizations that received grants from Pacific Community Foundation this spring. Timely support for local residents in tough times is an important part of our work. Please consider making donations in the months and years to come as we all weather this pandemic together, and rebuild our community. There is more to do. 

Kathleen Sayce, Treasurer, Pacific Community Foundation