Legacy Planning and Charitable Giving

Do you want to leave something behind when you die?  What we leave behind and how we leave it is the purpose of legacy planning.

If your goals are to:

·         Control how your estate is distributed after your death

·         Simplify probate proceedings

·         Help pay expenses and estate or transfer taxes without liquidating other assets

·         Make charitable or planned giving contributions


Michelle and William are enjoying their retirement.  Their family business and investments did very well and they would like their children and their favorite charitable organizations to benefit from their financial success.

Permanent Insurance may be for you

Legacy planning helps to distribute your assets to the people and organizations you choose and can perpetuate generational wealth.  Permanent Life Insurance can help in two ways:

·         It builds tax-free cash value you can use for a family’s loss of income

·         Mortgage costs

·         Educational needs

·         Used to provide a financial legacy for beneficiaries

·         Cover probate and estate tax costs, leaving your property or business intact

No matter your income level, you can use Life Insurance to meet both personal and charitable objectives.  Leaving a financial legacy is a great way to positively affect future generations.

There are a variety of ways to set up a charitable gift using Life Insurance

Donate an existing policy:  Consider donating a policy you no longer need.  You may continue paying the premium with the amount equal to each premium payment being a gift to the charity or the charity may make premium payments in expectation of the eventual death benefit.  The charity becomes both owner and beneficiary of your policy.  If the policy has surrender value, the charity may choose to surrender or borrow the value for the funds today.

Purchase a new policy:  Alternatively, you may purchase a permanent Life Insurance policy and donate it to the charity.  The charity may use the policy’s cash value while you’re alive and receive the policy’s death benefit when you die.

Leave a bequest at death:  If your estate is the beneficiary of your policy, your will can direct use of some or all of the proceeds of your Life Insurance to make a gift to charity, free of any federal estate tax.  This will be true whether you or the charity owns the policy.  You can also designate your favorite organizations as beneficiaries on an existing policy.