Maximizing your donations without it costing you more
(2 min read)
Have you thought about making a charitable donation from your estate?
The primary goal when making a donation should always be in the interest of the cause.
If you’ve ever been interested in leaving money to a charity or cause, there is a way to do so without having to save up and set aside significant amounts of money.
How can you accomplish this?
You can purchase a life insurance policy on yourself and have the beneficiary be the charity.
Why would you do this?
If you want to leave $50,000 to a charity, your first option would be to save $50,000 in cash and set it aside in your bank account. This option costs you $50,000 to donate $50,000.
As a second option, you could purchase a life insurance policy with the charity as the beneficiary. A life insurance policy for $50,000 might only cost you $20,000 in premiums, which are spread over 20 years, in exchange for the $50,000 to be paid tax-free to the charity of your choice.
This saves you $30,000 and the charity still gets $50,000.
Plus, you will receive a large donation tax credit which will help minimize your estate taxes.
Its a win-win situation.
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