Retirement Plan Assets

Retirement plan assets (IRAs, 401(k) Plans, Profit Sharing Plans, Keough Plans, and 403(b) Annuity Plans) are great sources of retirement income but not always a good choice for making gifts for children and grandchildren. You may consider using retirement plan assets to make a significant and meaningful gift that will support the Program into the new millennium and beyond. And, because of the estate and income tax treatment of retirement plan assets, the “cost” of the gift to your estate and heirs is often relatively small.

Naming the Morehead-Cain Scholarship Fund as a beneficiary of your retirement plan account is one of the easiest ways to make a planned gift, and in many ways is similar to making a bequest. Simply call your plan administrator and request a Change of Beneficiary form. In the beneficiary section, list ‘The Morehead-Cain Scholarship Fund’ (Tax ID Number: 56-2462593) as the primary beneficiary for all or a portion of the account. Then return the form to your plan administrator and send a copy to us for our records. That’s it!

Retirement Plan Assets and Testamentary Charitable Remainder Trusts—Another Alternative

Charitable remainder trusts provide income to one or more beneficiaries for life with the remainder interest going to charity upon the death of the income beneficiaries. A great way to fund a charitable remainder trust is with retirement plan assets owned at the time of death.

The decedent’s estate receives an estate tax deduction for the present value of the Foundation’s interest in the retirement plan assets. The trust itself is tax-exempt so no income taxes will be due when the retirement plan assets are received by the Trustee. A charitable remainder trust funded with retirement plan assets is a great way to reduce estate taxes, provide a lifetime income stream to one or more beneficiaries, and to make a charitable gift—all at the same time. When the trust terminates, the remaining assets will be paid to the Program and used for the Morehead-Cain Scholars Program.

Please Note:
This information is not intended to be considered legal or tax advice. For advice regarding all matters associated with charitable giving, please consult an attorney and/or a professional tax advisor.

For more information

Email David Greer
Call +1 800.741.9023

The Morehead-Cain Scholarship Fund
Post Office Box 690
Chapel Hill, North Carolina 27514