Bequests / Estate Plans / Gift Annuities
When you make a bequest to the Community Foundation of Johnson County, your personal legacy will benefit the community forever. Your legacy to the community allows for distribution based on your wishes of some or all of your assets, tax free.
You may name the Community Foundation of Johnson County as a beneficiary of your life insurance, and you will retain ownership of the policy and have access to the cash value, as well as the right to change the beneficiary. This type of contribution allows you to give to your favorite charity after you die, even if you don't have the assets to give now.
While you retain ownership of the policy, there is no charitable deduction for the value of the policy when you designate the Community Foundation as the beneficiary or for subsequent insurance premiums. However, any proceeds payable to the Community Foundation at your death will not be subject to federal estate taxes.
Retirement Plans are one of the best types of assets to transfer to the Community Foundation of Johnson County because retirement plans produce taxable income. You could receive a number of benefits by naming the Community Foundation as the beneficiary of your retirement plan.
If you are going to make a charitable bequest of a retirement plan, it is usually better to transfer taxable assets subject to income tax to a tax-exempt charity, such as the Community Foundation of Johnson County, and to transfer the non-taxable assets not subject to income tax to heirs.