“THEY MEANT WELL”

Leaving Your IRA to Ministry

We all know the hidden meaning behind this common pardon for others. “Well, you know… they meant well.”

Translation: Their intentions were good, but their judgment was poor. Had they known better, they could have done much better.

Unfortunately, such can be said for many well-intentioned Christians who tried to balance family provisions with charitable giving in their estate planning.

People often leave their IRA, 401(k) or other retirement funds to family, and then they give entirely different assets from their will to their church or favorite ministries. In most cases, this is the exact opposite of what’s best.

When you leave your retirement funds to family, you create a taxable event. This gift will be treated as income when the funds are withdrawn, and your loved ones will be taxed accordingly.

On the other hand, by giving those funds directly to ministry, you can eliminate the tax bill and provide meaningful support for the causes that mean so much to you. Then, you can give more tax-efficient gifts from your will to provide for the needs of your loved ones.

How do you give retirement funds to ministry? It’s really quite simple.

Option A: Direct Designation

Designate your favorite ministry as a beneficiary on the forms provided by your account manager, specifying the amount you want to give.

Option B: Give Through Barnabas Foundation

OR

Giving retirement funds to multiple charities?

Consider naming Barnabas Foundation as the charitable beneficiary. Then, you provide Barnabas Foundation with a list of your favorite ministries (and the percentage you want each to receive).

By leaving your retirement to ministry, you’ll create a win-win situation for your loved ones and the causes that mean so much to you.

Your intentions will be good, and your execution will be even better.