Beneficiary Designations
Naming Madison House as a charity that will receive your assets once you are gone can be a simple process. Most assets can pass to your intended beneficiaries by the terms of your will. Other assets, such as retirement plans, life insurance and insurance annuities, however, are not controlled by the terms of your will. These assets instead require separate beneficiary forms.
The beneficiaries of these assets can be easily modified at any time to meet your changing needs:
• IRAs and retirement plans
• Life insurance policies
• Insurance annuities
Changing Beneficiaries
To name or change a beneficiary, simply contact the administrator of the IRA/retirement plan or insurance policy for a change of beneficiary form. If you would like to name Madison House as beneficiary, simply decide what percentage of the plan's value (0 percent - 100 percent) you would like us to receive and name us, along with the stated percentage, on the beneficiary form (Federal Tax ID# 54-0519591). Then return the form to the administrator of the plan or policy.
If you have questions about naming Madison House as beneficiary of any of these assets, please contact Julie Jarrett at julie@madisonhouse.org or 434-977-7051. We are happy to help, without obligation and in confidence.
The information in this website is not intended as legal advice. For legal advice, please consult an attorney. Federal estate tax, state income/estate taxes or state law should always be considered.
IRA and Retirement Plan Beneficiaries
Most retirement plans, including 401(k)s and IRAs, are income tax-deferred, meaning that income tax is not paid until the funds are distributed to you in life, or upon your death. This taxation makes retirement assets among the most costly assets to distribute to loved ones.
Because they are subject to income taxes to your beneficiaries, retirement assets make ideal gifts to tax-exempt charitable organizations such as Madison House. Otherwise, the income taxes on retirement assets you leave to your loved ones can be as high as 35 percent. This means that an IRA worth $100,000 will be worth only $65,000 by the time it reaches your heirs.
On the other hand, the naming of a charity as the beneficiary of retirement assets upon death generates no income taxes. Madison House is tax-exempt and eligible to receive the full amount and bypass any income taxes. This means that in the above example, Madison House would receive the full $100,000 benefit.
If you have questions about naming Madison House as beneficiary of any of these assets, please contact Julie Jarrett at julie@madisonhouse.org or 434-977-7051. We are happy to help, without obligation and in confidence.
The information in this website is not intended as legal advice. For legal advice, please consult an attorney. Federal estate tax, state income/estate taxes or state law should always be considered.
Life Insurance Policy Beneficiaries
Life insurance is a popular method of providing much-needed funds to a beneficiary at your death. It is also a low-cost way to provide a large benefit for someone in need. Life insurance proceeds are almost always income tax-free to the beneficiary. The beneficiary designation in your life insurance policy determines where the proceeds will be distributed. The death proceeds, therefore, are not typically transferred through your will. Life insurance can be distributed to a charitable organization such as Madison House, if we are named as a beneficiary of the policy at the time of your death.
If you have questions about naming Madison House as beneficiary of any of these assets, please contact Julie Jarrett at julie@madisonhouse.org or 434-977-7051. We are happy to help, without obligation and in confidence.
The information in this website is not intended as legal advice. For legal advice, please consult an attorney. Federal estate tax, state income/estate taxes or state law should always be considered.
Insurance Annuity Beneficiaries
Insurance annuities, unlike life insurance, carry an income tax burden. Your named beneficiary is responsible for paying the income tax due on the growth of the annuity while you owned it. The tax burden makes these assets a popular choice to leave to a charitable organization like Madison House because we, as the recipient, can eliminate the tax bill.
If you have questions about naming Madison House as beneficiary of any of these assets, please contact Julie Jarrett at julie@madisonhouse.org or 434-977-7051. We are happy to help, without obligation and in confidence.
The information in this website is not intended as legal advice. For legal advice, please consult an attorney. Federal estate tax, state income/estate taxes or state law should always be considered.
Completing Your Beneficiary Designation
We hope our website has answered many of your questions about naming loved ones and Madison House as beneficiaries of your retirement plan, life insurance or insurance annuity assets. Here are some actions to take to learn more about this way to provide future support of our mission.
• Consult an estate planning attorney before deciding who will get what in your estate plan.
• Contact Julie Jarrett at julie@madisonhouse.org or 434-977-7051 for more information about ways to support Madison House after your lifetime
If you have questions about naming Madison House as beneficiary of any of these assets, please contact Julie Jarrett at 434-977-7051 or julie@madisonhouse.org. We are happy to help, without obligation and in confidence.
The information in this website is not intended as legal advice. For legal advice, please consult an attorney. Federal estate tax, state income/estate taxes or state law should always be considered.