Beneficiary of Retirement Plan or Financial Account

Is it time to update the beneficiaries on your accounts?

Almost any type of financial account allows you to designate a “payable on death” (POD) beneficiary. Sometimes it is referred to as a “transfer on death” (TOD) beneficiary. If you have Individual Retirement Accounts (IRAs), retirement plans like a 401(k), checking, certificate of deposit (CD), savings, and investment brokerage accounts, you may have the opportunity to make a planned gift to Direct Relief by simply naming the organization as a beneficiary.

Naming Direct Relief as a beneficiary of a retirement or other financial account is one of the easiest and most meaningful legacies you can give—helping deliver essential medicine and medical resources to people who are affected by future poverty, natural disasters, and other emergencies. It costs you nothing today, and makes a meaningful impact as part of your legacy.

Please notify Direct Relief if you name the organization as an account beneficiary. Doing so will allow us to thank you for your generosity, and helps ensure that your gift will be properly recognized when it is received. You can do so by clicking here.

Direct Relief will receive your gift without the delay of probate

Naming Direct Relief as a beneficiary on your financial or retirement account means that when you pass away, the organization receives your gift without the delay and expense of probate. Probate is a legal process to determine the validity of a will and helps ensure an orderly administration of a deceased person’s estate. Probate is not always required but when it is, in some situations it can be costly and time consuming. By avoiding probate, your gift can make an impact on people’s lives faster.

Naming an account beneficiary might have tax benefits

You may name Direct Relief as the beneficiary of all or a portion of the assets that are held in these accounts when you pass away. Direct Relief pays no income tax on the distribution, so 100 percent of the gift will be used for helping vulnerable people access the health services they need. If your estate plan includes tax strategies to benefit the people and causes you love, consult your tax advisor, attorney, or estate planning advisor when designating a beneficiary.

Donate the remainder of your IRA or 401(k)

You will use your IRA and 401(k) plan savings to enjoy your retirement and after you pass away your accounts might still have value. When you name Direct Relief as a beneficiary of your retirement accounts you help deliver essential medicines for people who will be affected by future poverty, natural disasters, and other emergencies—people who otherwise might not have access.

Certain types of retirement plans may have restrictions limiting your ability to name Direct Relief as a beneficiary. If you aren’t sure whether your plan allows for charitable beneficiary designations, the plan administrator can provide you with more information.

Contact your financial institution or retirement plan administrator to request a beneficiary designation form, or for instructions to make the designation using your online account access.

Donor advised fund beneficiary

During your lifetime, you use your donor advised fund (DAF) to support Direct Relief’s efforts. When you pass away there might still be value remaining in your giving fund, so consider naming Direct Relief as the final beneficiary. This is a simple and easy way to support a cause you care about, and create a lasting legacy.

For more information about Direct Relief’s Legacy Society or planned giving, contact us by clicking here.

Direct Relief’s Employer Identification Number (EIN) for tax reporting is 95-1831116.

Direct Relief offers free access to online forms from Giving Docs to help you designate account beneficiaries. If you would like to start using Giving Docs to name Direct Relief as an account beneficiary:

Giving Docs is a third-party platform that is separate and independent from Direct Relief. Direct Relief does not review the services provided or the documents you create using Giving Docs. Direct Relief is not liable for the use of Giving Docs services. Your use of the Giving Docs platform is subject to Giving Docs’ Terms of Service, which we encourage you to review.

For more information about Direct Relief’s Legacy Society or planned giving, please click here to contact us.

Popular Types of Planned Gifts