When it comes to end of life planning, many of us just focus on providing for our family. However, CA residents are known for our generosity and commitment to making the world a much better place. Many of us who have spent our lives dedicated to a cause would like our work to continue even after we have passed. One great way to ensure that is with the help of your life insurance policy. There are several ways to help a charity with your life insurance policy, depending on what you’d like to accomplish.
Make The Charity A Beneficiary
One of the easiest ways to support a charity with your life insurance policy is to name them as one of the beneficiaries. The charity can be anything from your local church to a global non-profit organization. Once you have named them, you should determine how much of your estate you want them to receive after you pass. Take note that there are no tax benefits to naming a charity as one of your beneficiaries. The value of the policy that you have allocated is just removed from your federal estate taxes.
Make A Charity A Sole Beneficiary
For those of us who do not need to financially support our Roseville family after we pass, we have the option of naming a charity as the sole beneficiary of our estate. Making a specific charity the sole beneficiary of your existing policy is simple. You have to work with your life insurance agent to transfer the ownership of the policy to the charity. Once this is done, the charity will receive all the funds once you have passed. This also has some tax benefits in terms of the current federal income tax deductions. It’s a good idea to review this decision with your financial planner or tax accountant to ensure that you are taking advantage of these benefits.
Create A Policy For Your Charity
Finally, if you are looking to make a substantial gift for when you pass, a great option is to purchase a life insurance policy under the name of the charity. To do this, you will have to work with an insurance agent to find the policy and then name the charity as a beneficiary. Then, you can work with the charity to pay the premiums through gifts to the charity. This provides federal tax deductions, and the policy benefits are not included in your estate for federal estate tax purposes.
No matter which approach you’d like to take to support your favorite charity, the agents at Asurea can help. We represent over 80 different insurance companies and can help you find the best policy to ensure that your life’s work continues after you’ve gone. Check out our website at https://asurea.com to learn how we can help, and then give us a call. Our CA agents will be happy to answer any questions you have and work hard to support your legacy.