UNDERSTANDING THE OPTION
During life, certain IRA owners may qualify to make direct charitable distributions. At death, a donor can name the Episcopal Diocese of Chicago for all or a percentage of a retirement account using the plan’s beneficiary process.
Tax-deferred retirement accounts may carry income-tax consequences for individual beneficiaries. A tax-exempt charity generally receives charitable beneficiary assets differently, which can make asset selection an important estate-planning conversation.
Roth and traditional accounts, employer plans, inherited accounts, and current transfers are governed by different rules. Do not rely on a general description for a specific plan.
Why donors consider it
- Can create a current or future gift
- Beneficiary percentages are often easy to revise
- May coordinate tax-deferred assets with other inheritances
A thoughtful process
- Inventory all retirement accounts and beneficiary forms
- Ask advisors which assets best fit each beneficiary
- Request the Episcopal Diocese of Chicago’s legal information
- Submit and retain the updated designation
- Review after major life changes
Points to discuss with your advisors
- The plan document and beneficiary form control
- Spousal rights may apply
- Current lifetime gifts are not available from every plan type
- Roth assets may have different planning characteristics
This overview is not legal, tax, investment, or financial advice and does not confirm that the Episcopal Diocese of Chicago can accept a particular asset or arrangement. Please consult qualified advisors and contact the Episcopal Diocese of Chicago before taking action.