I am considering having my will updated because I want to leave 10 percent of my assets to my church. I have heard that retirement assets are better to leave to the church than other assets.  Is that true?

First of all, let me commend you for wanting to name your church in your will.  Many people are considering doing this now, and it is a wonderful way to give back to God what He has blessed you with, even after your death. 

It is true that retirement assets are a good choice for your church, for several reasons.  Since income taxes have not been paid on these assets yet, your heirs will have to pay them in the year they receive them, leaving less for them to keep.  However, your church will not, since it is a non-profit entity.

In addition, leaving retirement assets to your church can be as simple as changing the beneficiary designation on your retirement plan account, without having to update your will, since this form takes precedence over your will.

You just need to contact your account representative and ask for a beneficiary designation form, then designate the amount or percentage your would like your church to receive.