Making MLT A Beneficiary of Retirement Assets

If you make MLT the beneficiary of a retirement account (401(k), IRA, or other qualified plan) you can reduce estate and income tax liabilities and provide MLT much needed support to do conservation work.

Your retirement plan administrator should be able to provide you with a beneficiary designation form to name MLT and (any other non-profits), and identify amounts or percentages to be allocated to beneficiaries. These details can also be changed by completing a new form. Personal withdrawals from the retirement account are permissible during the donor’s lifetime.

The beneficiary designation form will ask you for MLT’s legal name - Mahoosuc Land Trust, Inc. - and our Tax ID#: 01-0447619.

Making MLT A Beneficiary of Life Insurance

You can name MLT as primary beneficiary of your life insurance policy or as contingent beneficiary should your other beneficiaries not survive you. When a life insurance policy is no longer needed to satisfy its original intent (e.g., spouse and children arewell provided for), the policy can become an excellent way to further MLT’s conservation mission. The steps are simple:

  1. Provide now for a future gift by naming MLT as owner and beneficiary of a policy insuring your life.

  2. At death the benefits pass to MLT free of federal estate tax and are applied to the program designated by the donor.

  3. If you name MLT as owner and beneficiary of a paid-up whole life insurance policy, an income tax charitable deduction would be available to you in an amount approximating the policy’s replacement value.

  4. If you name MLT as owner and beneficiary of a partially paid up policy, your income tax charitable deduction is approximately the cash surrender value. If you continue to pay premiums after the gift, these premiums are also deductible.

If you have term or other life insurance policies, you can assign MLT all or a portion of the death benefit as a future gift, although in this case there would be no income tax charitable deduction. Your insurance agent or the company issuing the insurance can provide a change of beneficiary form.