Estate Planning Options: Leave a Legacy by Gifting to Charities

Estate planning is a necessity of life for people of all ages. Whether you are new to estate planning or have revised your plan multiple times, have you ever thought about how insurance-based charity aligns with your goals? If you are looking for ways to give back to your local community, your estate plan can be a valuable vehicle for helping others and alleviating some of the financial burden associated with estate taxes.

It’s possible to gift your life insurance policy to a charity of your choice by using one of three strategies:

1.  Make your charity of choice the beneficiary of your life insurance policy. When done correctly, your estate could receive a tax credit that wipes out the cost of the taxes on your estate.

2.  Donate a permanent policy you no longer have a need for. Designate a charity as a beneficiary, and you could receive tax relief for this donation today.

3.  Purchase a new policy and name the charity you choose as the owner and the beneficiary. In return, you can receive tax credits for the premiums you pay on the policy.

Regardless of which option you choose, each can make a difference in your community.

We can guide you through the estate planning process if you would like to incorporate insurance-based giving into your estate plan, whether you choose to gift to Collingwood General and Marine Hospital or another purposeful organization. We also suggest watching Collingwood General and Marine Hospital’s video on gifting an insurance policy to a charitable organization for additional information.