Are retirement policies a good planned gift?
A. Yes, they can be. Your pre-tax IRA or 401-K, or a portion thereof, can pass to the church without any taxation, whereas it would be taxed at income tax rate and assessed any applicable estate taxes, too, if left to a family member or friend. It is generally advantageous to use any pre-tax accounts first in making a planned gift, and leave assets already taxed to your individual beneficiaries. Check with your policy carrier for methods to declare the church as a beneficiary.
