Many plans to leave a portion or all of their assets to a favorite charity at their death. Unfortunately, if you plan to “gift” money from your estate, it will cost your estate one dollar for every dollar given to the charity. While gifting an asset directly is an option, wouldn’t it be better to either leverage the amount offered or discount the cost of the gift? Fortunately, there is another option to ensure your charity receives the most benefit from your generosity.
Rather than gift assets directly, you could purchase a life insurance policy, where you pay the premium and name the charity as the beneficiary. For example, suppose you want to leave $100,000 to the charity of your choice at your death. You could purchase an insurance policy today with these dollars if you qualify medically. Depending on your age, a $100,000 single premium today might generate 2 or 3 times that much in future death benefit to the charity.
Call or text us today at (352) 508-4221 to discuss your gifting strategy if you are considering leaving money to a charity.