Naming Saint John’s Preparatory School as a beneficiary is a smart way to provide a future gift to the Prep School with a minimum of planning and paper work.

In fact, it’s so simple, it’s a wonder that more people don’t do it. Life insurance policies that you no longer need for their original purpose (for example, your children are now grown) make excellent vehicles for beneficiary designation. The same is true for IRA accounts or 401 (k) or TDA accounts -- any investment or policy you have that permits a beneficiary designation is perfect for this purpose.

Making a future gift to the Prep School by using a beneficiary designation is very easy. You simply name the school as the beneficiary. The best way to do this is in writing and by visiting with your financial adviser, insurance agent, accountant, or banker who handles your financial affairs. Be sure to get and keep a copy of the beneficiary designation for your records. If you’re willing to share, we would appreciate a copy here at Saint John’s Prep, but it’s not essential for us to have a copy.

An added bonus: An IRA or 401 (k) retirement account that would be heavily taxed if it passed to other heirs will pass 100% tax free to Saint John’s Prep School, since we are a charitable organization. In addition to providing a nice gift to the school you will also be preserving 100% of your hard-earned money. Although tax laws are always changing, the only current way you can guarantee the preservation of 100% of your IRA or 401 (k) or 403 (b) assets is to designate a charity as the beneficiary. All other ways might involve some significant penalties and/or the payment of unanticipated taxes.

This might be a good time to review all of your life insurance policies, IRAs, TDAs, 401 (k)s, and other various beneficiary designations. Take an inventory of these oft-forgotten assets and then determine if it might be a smart idea to designate Saint John’s Preparatory School as the beneficiary of one or more of your policies or accounts.

It is important to use the correct language in your beneficiary designations so that your wishes can be strictly and accurately carried out. When naming the Prep School as a beneficiary, be sure to write, “…Saint John’s Preparatory School, as conducted by the Order of Saint Benedict, Collegeville, Minnesota.”

NOTE: This information should not take the place of competent, qualified legal advice. Examples are general and hypothetical.