Bequests in a Will

In addition to outright gifts, charitable contributions can be made as a bequest in a will. A donor should keep in mind the only way to make a charitable contribution at death is to provide for such contribution in the last will. By making a charitable contribution at death, as provided in the donor's will, the donor has the advantage of having full and unlimited access to the property up until the time of the donor's death. In addition, the donor has the advantage of receiving an unlimited estate tax deduction for any property left to charity in the will.

Life Insurance in Charitable Planning

Using life insurance to fund a charitable gift is a very attractive method of giving. There are advantages for both the charity receiving the gift, as well as the donor.

• Even a small, income tax deductible annual premium donation can provide a large gift to the charity of choice. Contributions can be made in a one-time lump sum or in installments with periodic premium payments.
• The death benefit proceeds are promptly paid to the charity, the policy's beneficiary. There is no need to wait for a will to settle or the estate to clear probate.
• Both the charity and the donor receive tax advantages with the gift. The gift of life insurance qualifies for a charitable tax deduction if the charity owns the policy. Additionally, the death benefit is paid to the charity free of estate or federal income taxes.
• Life insurance allows people of modest means to give a substantial gift to their favorite organization.
• Pennies now in premium create future dollars in death benefit to the charity.

There are various methods in which life insurance can be utilized to make a charitable gift, consult your personal estate planner for more details.