How Can I Give My Assets to Family and Friends?
Homestead Funds has a variety of options for shareowners to give money to invest in a family member or friend’s account. It is important that the recipient of your gift has established the appropriate account type with us prior to your gift.
Giving by Check:
You may mail us a personal or business check made payable to Homestead Funds along with accompanying allocation instructions for the recipient’s account. Please be sure to include the recipient’s name and account number with your check to ensure timely processing of your request. Homestead Funds does not accept third-party checks, cashier’s checks, money orders, traveler’s checks, cash or cash equivalents, starter checks or credit card convenience checks.
Giving from Your Homestead Funds Account:
You may also gift shares from your current Homestead Funds account to a family member or friend’s account by providing a signed letter of instruction. This letter will need to be Medallion Signature Guaranteed and contain detailed instructions for the transaction, including account numbers and allocation instructions. We recommend using the Transaction Request Form when writing this letter as some banks won’t provide a signature guarantee unless it is on our specific form.
Giving through Payroll Deductions:
You may utilize payroll deductions to systematically invest in a friend or family member’s Homestead Funds account by providing your employer with the completed Automatic Payroll Deduction Form. Employers may use the Employer Instructions to Submit Funds form for guidance when submitting payroll deductions electronically to Homestead Funds. Your employer may call a Homestead Funds Representative at 800.258.3030 between 8:30 a.m. and 5:00 p.m. ET for any assistance with establishing this automatic deduction.
Giving through Minor Accounts:
Homestead Funds encourages building smart money savings habits at an early age. We offer three accounts specifically for minors with the goal of letting compound interest help a minor save more for their future. You may be saving for a child’s education or a niece’s or nephew’s future home down payment, so we want you to have the right investment vehicle to help you achieve that goal. You can read more about these account types.
Giving through Beneficiary Designations
We encourage you to review your beneficiary designations on a periodic basis to ensure proper estate planning in the event of your death. Leaving a legacy for loved ones can help toward paying expenses in their time of grieving and ensure a smooth transition forward. IRA account holders can complete the IRA and ESA Beneficiary Designation Form to update their beneficiaries, while individual or joint account owners can complete the Transfer on Death Beneficiary Designation Form to update beneficiaries on a regular taxable account.
All documents should be mailed to the address on the form.
How Can I Give My IRA Assets to Charities?
Qualified Charitable Distribution (QCD):
IRA owners who are age 72 or over may pay an otherwise taxable distribution directly from their IRA to a qualified charity and avoid taxation on the distribution. There are specific IRS rules and requirements that a shareowner must follow to ensure they are eligible for such a distribution. We strongly urge that you consult with a tax advisor prior to making a QCD request.
Shareholders may request a QCD by completing the IRA Qualified Charitable Distribution (QCD) Request Form.
The form requires a Medallion Signature Guarantee if:
- You request that Homestead Funds mails the check directly to the charity. – OR –
- If you are mailing the check directly to your address of record and the requested amount is greater than $10,000.
Other Distributions to Your Church or Charity:
You may transfer shares in-kind from your Homestead Funds account to a church or charity with a Medallion Signature Guaranteed letter of instruction. Before submitting this request, you will need to ensure that the recipient church or charity establishes a Homestead Funds account by completing the Entity Account Application. We strongly urge you to consult with a tax advisor prior to making this transaction.
Your letter of instruction will need to include the following information:
- Your written instruction requesting to transfer shares in-kind to the recipient.
- The exact dollar or share amount you wish to transfer.
- The Homestead Funds account number and fund number from which the assets will be transferred along with the recipient institution’s account number.
- The percentage to withhold for state and federal taxes. Please note that federal income tax will automatically be withheld from IRA distributions at the rate of 10% unless you indicate 0% withholding or another percentage to be withheld above 10%.
We recommend using the Transaction Request Form to assist you with writing your letter of instruction for your transfer request.
This form will need to be signed by you with a Medallion Signature Guaranteed Stamp.