Other than a Charitable Bequest (by your will if you have one) -
Through a gift of life insurance, you can make a substantial future gift to a charity at an affordable cost.
How It Works:
There are several ways to make a gift of life insurance:
* If you have a life insurance policy you no longer need, you can contribute it to a charity by naming the charity as the policy owner and beneficiary. You receive an immediate charitable income tax deduction equal to the cash value of the policy. If you choose to give the charity money to pay future premium payments, those cash donations are also eligible for a charitable income tax deduction. At death, the life insurance proceeds are not included in your estate for federal estate tax purposes.
* Alternatively, you can purchase a new insurance policy on your life, name the charity as owner and beneficiary, and arrange to make cash donations to the charity for premium payment purposes. Those cash donations to the charity for premium payments are then deductible on your income tax return. At death, the life insurance proceeds are not included in your estate for federal estate tax purposes.
* Finally, you can simply name a charity the beneficiary of a life insurance policy you continue to own. In this instance, there is no charitable income tax deduction available, but the proceeds of the policy at your death will not be included in your estate for federal
estate tax purposes
Life Insurance is a practical and affordable way for you to do more than you may have thought possible. "Deferred Legacy Gifts" of $5,000, $10,000, $25,000 , $35,000 or more are within reach. Donors no longer need to accumulate wealth in order to make substantial and meaningful gifts to charities, schools, universities, houses of worship, community foundations...
Imagine the impact of your generosity stretching for generations. Your annual donations to causes you care about – your favorite non-profit, your house of worship, your alma mater – are a testament to your values. But what if your spirit of giving could bloom even after you're gone?
Discover the potential of a Deferred Charitable Legacy Account.
Through a donor-advised fund, you can establish a lasting source of funding for the causes you champion. Partner this with a life insurance policy owned by and payable to the fund, and you create a powerful legacy:
Don't let your generosity end with your life. Let it blossom into a garden of good, nurturing those close to your heart and shaping a brighter future for generations to come.
Using a Donor Advised Fund offers several advantages:
Immediate Tax Deduction: You receive an immediate tax benefit for the full amount of your contribution when you donate to the fund.
Flexibility: You can contribute various types of assets, such as cash, stocks, or real estate, to the fund and recommend grants to qualified charities over time.
Simplicity: Managing charitable giving through a DAF consolidates your contributions into one account, simplifying record-keeping and administration.
Strategic Giving: With a DAF, you can strategically plan your charitable donations by setting aside funds and deciding later on specific charities to support.
Legacy Planning: A DAF can be a tool for long-term philanthropic planning, allowing you to involve family members in the decision-making process and establish a charitable legacy.
Anonymity: If desired, you can make grants anonymously through the DAF, providing privacy in your charitable activities.
Overall, a Donor Advised Fund offers a structured, tax-efficient, and strategic approach to charitable giving, allowing you to maximize the impact of your donations.
Click the below Download button for a Sample Deferred Funding Agreement to establish a Donor Advised Fund with Life Insurance upon the Donor's Passing
Everyone should make a will or living trust, regardless of wealth. Having a plan in place ensures that your wishes are known and saves your loved ones the stress and cost of intestate probate proceedings. Create a free will or trust to support the people and causes you care about most even after you’re gone.
Since 1975, John Sadler Hayes, II, President of Sadler Hayes Associates, Inc., has been providing individuals, families and businesses quality of life protection with Long-Term Care Insurance, Critical Illness Insurance, Disability Income Insurance, Dental Insurance/Plans, Medicare Supplement Insurance, Health Insurance, Life Insurance, Fixed Annuities - Deferred and Immediate Income.
Sadler also helps individuals create charitable legacies with life insurance to support the charitable organizations, schools and universities, hospitals, medical research, community foundations most important to them.
Sadler represents multiple life and health insurance companies that provide coverage options and competitive rates for residents of NY and NJ.
Note that John Sadler Hayes, II is a licensed life and health insurance agent in the states of New York and New Jersey
and does not provide legal or tax advice.
For any tax or legal questions or concerns - consult with your legal and tax advisors.