EMPOWERING DONORS TO ACCOMPLISH MORE

Millions of Americans make donations of cash and property to the charities of their choice each year. However, while these donations can provide valuable tax deductions, many donors are left wishing that they could do more for the charities that they love and support. Some donors would therefore be wise to consider using life insurance policies as a more effective means of leveraging the support they provide. In many cases, this can be the most effective and convenient asset that they can give. 

There is also no limit on the size of the policy that may be donated, since charitable donations have no ceiling for estate tax purposes. The donor may provide for a large posthumous charitable gift, perhaps funding a significant charitable project. Through the use of life insurance, the donor can guarantee that the project will be funded. This strategy also does not impede the donor's current investment strategy.

Naming a charity of your choice as the beneficiary of your life insurance policy is the simplest way to provide a charity with the death benefit proceeds from a policy. 

Naming a charity as a beneficiary also ensures the privacy of the transaction, which can be important for donors who wish to keep their gifting intentions secret from their families or other heirs. Transfer of assets from an insurance contract is also absolutely incontestable, thus rendering anyone contesting the estate settlement powerless to stop it. 

Donors who wish to leverage their cash donations to charity can use life insurance as an excellent means of accomplishing their goal. By either gifting a policy outright or naming a charity as beneficiary, they can provide the charity of their choice with a large sum of money that can provide a lasting legacy for a cause that they believe in. 

Using an alternative means to acquire life insurance through a Legacy Trust may provide an attractive alternative for getting the benefits of life insurance without potentially jeopardizing your assets' ability to earn interest.  

This approach has the added benefit of being tax efficient: The funds that the trust borrows to pay the annual premiums and interest expenses generally are available free of gift taxes.