Make a Gift by Beneficiary Designation

Retirement Plan

Many people do not know that when retirement plans such as pension funds, 401ks, 403bs, and IRAs are left to an individual other than a spouse, they can be subject to income taxes and estate taxes. The two taxes combined could erode up to 80% of the remaining benefits.

If given to the United Methodist City Society, these funds would escape all income and estate taxes and reduce the size of your total taxable estate. The City Society would receive 100% of the remaining benefit in your retirement plan, whereas your heirs may receive only a portion of the benefit.

Life Insurance

If you own a life insurance policy that is no longer needed to protect your family or for other purposes, you may use it to make a gift to the United Methodist City Society (UMCS). One way to give a life insurance policy is to name the UMCS as the owner and irrevocable beneficiary of the policy. In doing so, you qualify for an income tax deduction for the cash value of the policy. The policy conversion terms are subject to review. Alternatively, you could name the UMCS as the beneficiary of the policy. In this case, your estate would be entitled to an estate tax deduction equal to the policy’s value.

Financial Accounts

Many people’s primary assets are held in savings, checking, and brokerage accounts. Designation of these assets incurs no cost to you and allows whatever balance (or portion thereof) remaining to pass to the City Society at your death.

Completing the Designation

Naming the City Society as a beneficiary of any of the abovementioned gift types is easy: Contact a representative of the institution that manages your account or policy and request a “change of beneficiary form.” You will need the following information: Name: The United Methodist City Society. EIN:13-5562419.