Retirement plan assets can be liable for extremely high estate tax -- and will be subject to income tax when received by an individual beneficiary. Total tax on retirement plan assets left to individuals after the owner's death can be as high as 90%, when federal estate tax, a 15% excise tax and state and federal income taxes are totaled! By leaving your retirement account to the Jewish Family and Children's Services, you can entirely eliminate estate and income tax on these assets.

To change the beneficiary of your retirement plan, simply instruct the company or custodian of your account to name the Jewish Family and Children's Services of San Francisco, the Peninsula, Marin and Sonoma Counties as the death beneficiary. You will be provided with the appropriate forms. You should also add a codicil to your will or living trust instructing that your retirement plan assets and insurance death benefits are to be given to JFCS.

Retirement plans may also be used to fund charitable remainder trusts and pooled income funds. In this way you can assure your loved ones of lifetime income from these assets while minimizing taxes and fulfilling your philanthropic goals.

It is always wise to name a contingent beneficiary of your estate, insurance policies and retirement plans, in case your primary beneficiaries predecease you or "disclaim" the inheritance for tax or other reasons. This is an excellent opportunity to make an important charitable gift that will not "cost" your heirs anything.

For more information about giving retirement plans, please call the Director of the JFCS Permanent Endowment Fund at (415) 561-1222 or ClaireA@jfcs.org.