Life insurance can be a smart tool for charitable giving.
Why? It can keep the cost to you (your premiums) relatively low while the amount the charity receives could be substantial. There are also tax benefits because life insurance policies that are paid to charities are not subject to income and estate taxes (along with other costs and expenses) resulting in the charity receiving the full amount of the policy.
There are a few ways to donate a life insurance policy to charity. The simplest option is to name a charity as a beneficiary within the policy. You can also donate an existing policy to charity by assigning all rights in the policy to the charity. With this option you give up control of the life insurance policy, however it will provide the full tax advantage to the organization you are donating it to.
Another option is to use a life insurance policy in conjunction with a charitable remainder trust which is more complex and would require the assistance of an Advisor.
Click here for more details about using life insurance as a philanthropic tool.
Click here to read more about using charitable trusts to achieve your philanthropic goals.
With offices in Rutland and Williston, Vermont Copper Leaf Financial can help you maximize your charitable giving efforts and create a legacy plan for the future – a plan that includes intentional giving and overall alignment between your values, your savings, investments, your charitable giving & philanthropy, and your community and lifestyle. For more information about our charitable planning services please click here or call us today at 802-878.2731 to schedule a strategy session and find out how we can help you achieve your philanthropic goals.