Cash: Certificates of Deposit, Savings Accounts, and Money Market Accounts
Retirement Plans: Individual Retirement Accounts (IRAs) and 401(k) Plans
Life Insurance Policies
Cash: Certificates of Deposit, Savings Accounts, and Money Market
These assets can easily be contributed by including UCS on the Beneficiary Designation Form of the institution where your accounts are held.
Appreciated Marketable Securities
While appreciated marketable securities held for more than one year and donated during your lifetime can be particularly tax advantageous because you receive an income tax deduction for the fully appreciated value of the securities donated and avoid a capital gains tax, marketable securities can also be transferred upon the death of the donor and result in an estate tax deduction.
IRAs, Retirement Plans, and 401(k) Plans
You can designate UCS as a beneficiary of part or all of the remainder of your IRA or retirement plan by completing a Beneficiary Designation Form of your employer or institution holding your IRA. Distributions from retirement plans and IRAs upon the death of the account holder can be subject to both income and estate taxes if not left to a charity.
In a large estate, these taxes can leave less than thirty cents on the dollar of the plan’s balance for your children or other heirs. By naming UCS, as the beneficiary of the remainder of your IRA or retirement plan, the full amount of the plan’s balance is contributed since the distribution to a charitable organization avoids both income and estate taxes.
You can designate UCS as a primary beneficiary or co-primary beneficiary on a form provided by your insurance company for an existing policy. For insurance policies that were designed to provide protection, but are no longer needed for their original purpose, you can transfer ownership of the policy to UCS. The income tax deduction when you donate a policy is the lesser of the current net cash value or the sum of premiums paid.
Prospective donors should consult their own financial advisor, accountant, or attorney to plan the legacy gift that maximizes benefits to them and UCS.