Creating the ideal charitable estate plan for you and your family requires great care. The gift plan needs to fit you like a glove. It should make sense and contribute to the satisfaction of knowing that you are carrying out God’s will, all while supporting your loved ones after you pass away. With proper planning, this decision may ultimately serve as one of the high points of your life.

Here are some important considerations to think about as you prepare your estate plans.

Ownership of Assets

One key component of your estate plan is how you title your bank accounts, real estate and other assets. It is important to review the title on each account or asset (checking, savings, CD’s, Money Markets, etc.). If there is another account owner of the asset, you should not assume the surviving account owner will transfer the asset based on your last will and testament or living trust; there may be no legal requirement for him or her to do so. If you are a co-owner of an asset with another person, the ownership usually passes to the other owner without probate and without being governed by your will.

Consult your bank advisor or broker about how to modify your accounts so they are titled according to your wishes—and so they coordinate with your will.

If you wish to include an individual or a charity, like American Bible Society, as the beneficiary of a CD or other account, you can ask your banker or broker to change the account ownership to a “POD” (Payable on Death) arrangement. The beneficiary will automatically receive the account assets when you pass away.

Life Insurance and Retirement Assets

Many common myths seem to persist about life insurance policies and retirement plan assets (such as IRA’s, 403(b)’s, 401(k)’s, KEOUGH, etc.), including the myth that these assets transfer at death without taxation. Without careful planning, this is usually not the case; the result would lead to an unfortunate situation for your heirs.

Life insurance is included as part of your estate. While death benefits pass without income taxes, these funds can increase one’s estate size, resulting in a sizeable estate tax.

Retirement plans are also included in your estate value for taxation; an additional income tax will be assessed for the distribution after death. Without careful planning, these qualified plan distributions can be double-taxed after you pass away, as retirement plans are often the most heavily taxed asset in a person’s estate.

Because retirement plans are heavily taxed, proper planning (which may include charitable gift plans) can help avoid income taxes and estate taxes, as well as pay a lifetime of income to your heirs on a tax-favored basis. By taking simple and low-cost steps to change your beneficiary, you have the power create a much more favorable outcome for your assets.

Are Your Plans Current?

Can you remember the date you signed your last will and testament or living trust? If not, you may want to consider reviewing them. Important details may have changed since you created these documents: heirs, assets, advisors, executor(s), residence location, etc. To ensure your plans are current, take a moment to review your will or trust.

If you hold on to deep values such as sharing God’s Word, expressing care for others, providing for those in need and setting a Godly example for your heirs, you may include such values as expressions in your estate plans. Changing your will may be as simple as creating an amendment (codicil). Please consider including American Bible Society as a part of your plans, knowing that you may help millions of people who still thirst for God’s Word around the world.

Our ABS Regional Advisors are able to explain various giving opportunities and help you and your advisor(s) tailor the ideal gift plan for you. Coordinating all of your plans and organizing all of your documents can give you great peace of mind, all while providing assurance that you have been a good steward of all that God has entrusted to you.

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