IRA Beneficiary
23. Option 4: Charity as Beneficiary
Option 4 is naming a charity as beneficiary.
If you are planning to leave an asset to a charity after you die, a tax-deferred account can be an excellent one to use. Here's why.
The charity will pay no income taxes when it receives the money. And because your gift is not reduced by income taxes, the charity receives the full amount of your tax-deferred account.
Also, assets you leave to charity when you die are not included in your taxable estate. So naming a charity as beneficiary can reduce the amount your family may have to pay in estate taxes.