One of the most generous gifts you can give your church, school or other non-profit is a gift that ensures that it will continue to survive and prosper financially long after you’re gone. Our ability to shop your life insurance rates with multiple companies allows you to always feel confident you have a competitive rate for your life insurance in Manning, Sumter, Turbeville, Florence, and Summerton South Carolina.
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Legacy Planning With Life Insurance
One of the most generous gifts you can give your church, school or other non-profit is a gift that ensures that it will continue to survive and prosper financially long after you’re gone.
This is how astonishingly simple it is.
David and Jean are 67 and 65 years of age respectively. They have worked their entire lives, invested wisely and are able to retire comfortably. They have always been faithful to their church with their giving to the church with their tithes and volunteer work. While updating their wills they decide to leave the church $50,000. That’s extremely generous of them but they could actually have left far more. By leveraging their $50,000 with life insurance they could possibly leave $100,000 or more to the church. Here’s how the simple but very powerful approach works:
A. You simply make cash gifts or a gift of appreciated property or marketable securities to your favorite cause. If appreciated property or marketable securities are used, the charity can sell the asset, avoiding any capital gains tax.
B. The cash is then used to pay either a single premium or continuous premiums on a policy written on your life or the lives of both you and your spouse.
C. Upon your death (or the death of the surviving spouse if a joint policy is used), the tax-free death benefit is paid to the charity (or to your estate and then to the charity, depending upon how you choose to set it up).
Here are the possible tax implications:
- Regardless of whether you make the charity both owner and beneficiary of the policy, the death benefit will not be subject to federal estate tax. State tax laws may vary.
- If you name the charity both owner and beneficiary of the policy, your gifts to the charity to fund the premiums are typically tax deductible. State tax laws may vary.
- Irrevocable gifts to charity are not subject to federal gift taxation.
- In each year for which the gift is made you should receive a receipt from the charity that shows your name, the date the gift was made and the amount, a description of the life insurance policy (including the policy number, the name of the insurance company and face amount of the policy) and whether you received any goods or services in return for the gift to include the amount of these goods or services.
Using life insurance to leverage your gifts to charity can be remarkably effective for those individuals and the charities they care about. A conversation about the substantial legacies that can be created by using new life policies or those that already exist can lead to dramatic benefits for all concerned.
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