If you like keeping things simple, then consider using beneficiary designations for important accounts.
You can use a beneficiary designation form to name a person or organization to receive proceeds from life insurance policies and retirement plan assets after your lifetime. You can also do this with bank and brokerage accounts.
Most states* allow you to designate a beneficiary for these types of accounts in one of two ways:
- Payable on death (POD): You name one or more persons or charities as the beneficiary of your checking, savings, or certificates of deposit once you, the account owner, pass away.
- Transfer on death (TOD): You designate one or more persons or charities to receive proceeds from your brokerage or investment account after your lifetime.
Bear in mind, it is not necessary for the designation to transfer all of the account solely to VMFA—you can designate a certain percentage of the account.
Also, with both POD and TOD accounts, the beneficiary has no rights to the funds until after your lifetime. Until then, you are free to use the money in the account, to change the beneficiary or to close the account.
Keep It Simple
Naming VMFA as a beneficiary of a bank or brokerage account is a simple and straightforward way to support our work. It also simplifies estate planning and administration because the executor of your estate won’t have to take any action to ensure your account transfers to whomever you designated.
Be sure to let us know that you have named us as a beneficiary so we can contact your administrator at the appropriate time and put your gift to work as you intend.
Contact Us
To learn more about naming VMFA as a beneficiary of your bank or brokerage accounts or certificate of deposit, please contact Marie Hawthorne, Senior Development Officer, at 804.340.1335 or marie.hawthorne@vmfa.museum.
*State laws govern payable-on-death accounts and transfer-on-death accounts. Please consult with your bank representative or investment advisor if you are considering these gifts.