BENEFICIARY DESIGNATIONS OF A RETIREMENT PLAN OR IRA

You may name the Alamo Heights School Foundation as the beneficiary on all or part of your qualified retirement plan or IRA. Your retirement plan and IRA would typically be subject to income and estate tax. Still, by naming the Foundation as the beneficiary, you would not have to pay income or estate tax on the portion of the retirement plan or IRA designated.

BENEFICIARY DESIGNATIONS ON PAYABLE ON DEATH BANK ACCOUNT

You may set up a bank account during your lifetime as a “payable on death” account. This will not change your control, ownership, or management of the account during your lifetime. However, if the Alamo Heights School Foundation is named as the beneficiary on your death, then the account would automatically pass to the Foundation at that time.

BENEFICIARY DESIGNATIONS ON A BROKERAGE OR INVESTMENT ACCOUNT

Similar to the payable on death bank account, a brokerage or investment account may be set up as transferable on death (“TOD”) account. Like a payable on death bank account, doing this will not change the control, ownership, or management of the account by you during your lifetime but would allow the account to pass to the Foundation at the time of your death. Please note that designations on these TOD accounts could be made to multiple beneficiaries so that you could designate just a percentage of the whole account to the Foundation.