Texas woman wants to give more than $10 million to charity — MarketWatch
A 74-year-old Texas woman with no children who has never been married wants to leave most or all of her assets, worth more than $10 million, to charitable organizations after her death. She has four brokerage accounts — two individual accounts, a self-directed IRA and a self-directed Roth IRA — as well as several bank accounts, MarketWatch reports.
The woman also fully owns a house and an SUV, has no outstanding debts and has already paid for funeral expenses. She is considering leaving the house and vehicle to her niece and nephew, who have agreed to represent her interests in financial and medical matters. At the same time, her main goal is to help people living in poverty who need support.
Will, beneficiaries or trust
The columnist noted that there are three main mechanisms for distributing assets: a will, designating beneficiaries on accounts, or a trust. Transferring stocks and funds through a will would mean going through probate, which is public and can take a long time.
Given the size of the assets, the author leaned toward recommending consideration of an irrevocable trust. According to him, such a mechanism provides more control over the timing and procedure for distributing funds and may provide for payments to the niece and nephew.
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In the author's view, the executor of the will should be competent, local and willing to perform these duties. In Texas, the executor may receive a commission of 5% of funds actually received or paid out while administering the estate, but not automatically from the entire value of the property.
Powers of attorney and taxes
A handwritten will in Texas may be legally valid if it is entirely written by hand, contains a clear disposition of property and is signed by the testator. However, the author advises consulting a lawyer, as such a document is easier to challenge in court.
The columnist also recommends executing a financial power of attorney that would take effect in the event of incapacity, as well as a medical power of attorney: designating one relative as the primary representative and the other as the successor. After death, the executor must file the final income tax return, Form 1040, and if the estate receives income, Form 1041. Form 706 may be required if the value of the estate exceeds $15 million in 2026; Texas has no separate inheritance tax.
Designating a qualified charitable organization as the beneficiary of an IRA or 401(k), according to the author, may help avoid taxation of retirement assets that would arise for an individual heir. He also drew attention to potential tax advantages of directly transferring appreciated stocks to charitable organizations.
