When most people think of estate planning, they envision a ‘Last Will and Testament.’ But here is the secret: some of your most valuable assets will never touch your will.
The “Hidden” Assets
Assets like your IRA, 401(k), life insurance, and bank accounts are governed by beneficiary designations, which override whatever instructions you leave in your will.
Because these pass outside probate, they offer a simple way to support the causes you care about—without paying an attorney or rewriting estate documents. By requesting a change-of-beneficiary form, you can designate a portion of an account to the Christian Brothers of the Midwest, securing Lasallian education for future generations with the stroke of a pen.
Avoid the “Set It and Forget It” Trap
The beauty of a beneficiary designation is its simplicity; the danger is its permanence.
Life moves fast—marriages happen, families grow, and loved ones pass away. Yet, unless you manually update your records, the original paperwork remains legally binding. Taking a few minutes to review your designations ensures your assets go exactly where your heart intends today, avoiding unintended conflicts or misdirected inheritances.
Leave a Blessing, Not a Tax Bill
Not all inherited assets are created equal. Heirs generally receive real estate, stocks, or cash tax-free. However, traditional IRAs and 401(k)s were built with pre-tax dollars. When heirs inherit these, withdrawals are taxed as ordinary income, often required to be paid within ten years.
Smart planning turns a tax burden into a profound gift:
- For Your Family: Leave tax-advantaged assets like real estate or stocks.
- For Charity: Leave tax-heavy retirement accounts.
Because the Christian Brothers of the Midwest is a tax-exempt non-profit, we receive 100% of your gift without paying a cent in income tax—maximizing what your heirs keep while multiplying your charitable legacy.
