Designate and Donate—Stocks and Investment Accounts

Ask the brokerage or mutual fund custodian for a T.O.D. (Transfer on Death) form. Some companies also call these beneficiary designation forms.

If you manage your own stock portfolio, there's a very easy way to make a gift to your favorite charity and build your own legacy. Just designate Family Residences and Essential Enterprises as the beneficiary of all or a percentage of your brokerage account using a beneficiary designation form. After your passing, the account balance you've selected will be transferred to our organization. Not sure where the forms are located? You'll need to contact your brokerage firm and/or search their website for "manage beneficiary designations" or "beneficiary designation form."

How It Works

• Contact your broker or investment account holder about a T.O.D. or beneficiary designation form for mutual funds or other types of investment accounts.
• Send completed form back to your broker or investment account holder, then contact us at (516) 870-1600 ext. 1050.

Benefits

• You receive an income tax deduction for the fair market value of the securities on the date of transfer, no matter what you originally paid for them.
• You pay no capital gains tax on the transfer when the stock or share of investment account is sold.

Stocks and Investment Accounts: You Have Planned for the Future

Investment accounts hold cash or stocks for the long term. You may have a mutual fund or a brokerage account, which is held at a financial institution. The objective of these accounts is to achieve long-term growth, provide future income, or preserve capital. After your passing, the remaining account balance may be transferred to heirs or charity.

When you opened the account, you should have received a T.O.D. form that tells the financial institution what to do with the assets when you pass away. If you do not complete this form, you will cause unnecessary confusion among your heirs and added expense to your estate administration.

Keep it simple. Ask the account custodian for a T.O.D. form, complete it, and share it with your financial or legal advisor. You can also leave all or a percentage of the assets to FREE. Any portion of your investment account left to us will be exempt from estate and inheritance tax. You also avoid paying any capital gains on assets that have increased in value over the years!

Jointly Held Accounts

You may be a joint owner of the brokerage account, or you may have made a loved one a joint owner. The joint-owner may engage in transactions on the account during your lifetime. The joint owner may also have "rights of survivorship," meaning that he/she will automatically succeed to the account when you pass away. Even if you have a joint account, you should complete the T.O.D. form to assure that the brokerage knows what to do with the remaining assets when both account holders have passed away. This step will also assure that the account may not become part of a time consuming and costly probate process.