Make Larger Donations Later, Get Tax Benefits Now
As you might expect, life insurance is an easy way to provide for a charity of your choice upon your death. It allows you to make larger gifts than you might otherwise afford, while generating current tax benefits.
The most tax-effective way to donate life insurance is to transfer the policy so that the charity becomes the owner and beneficiary. You are entitled to an immediate charitable deduction for income tax purposes. If you continue to pay the premiums, each payment is also a deductible charitable donation.
Whether this donation strategy is right for you depends on your specific circumstances and your family’s financial situation. It is also important to understand the tax implications of a charitable gift of life insurance. It is advisable for you to speak to your tax professional to learn more about the tax benefits and to determine if this is a suitable option for you. Should you decide to proceed please fill out the contact form below to have one of our representatives reach out to you regarding the next steps.