thelifesettlementnetwork.com » Charitable Giving

How to donate life insurance to charity

Wed, 21 Jan 2009 04:35:50 +0000

Firstly – life insurance is a wonderful tool for charitable giving, and there are often tax benefits for donors as well.

Below are examples of ways to structure a gift of life insurance:

A policyholder may:

donate an existing fully paid life insurance policy
name their favorite foundation or charity as the beneficiary of a policy
purchase new life insurance and name the charitable organization as a beneficiary
settle the policy and donate the proceeds

Each has unique deduction and estate taxation implications – so make sure to check with your tax and/or legal advisors.

Thriving despite the trends in your portfolio

Thu, 15 Jan 2009 01:39:46 +0000

More news about how the economy and continued slide in the markets has affected seniors more than any other age group. In December’s Smart Money cover article “Rebuild Your Wealth”, the authors consolidate data from various sources to make this argument.

Examples supporting the theory that seniors have been more adversely affected by the economic turmoil more than any other age groups:

The market crash erased $2.7 trillion in retirement savings
16% of seniors 65+ are still working – the highest rate since 1971
Health care costs are rising 2.5% faster than the rest of the economy

The article also states long-term care insurance is a must but is yet another monthly expense.

Reverse mortgages continue to be an option – but as I said in a previous blog, a last resort option.

If you or a loved one are holding or paying premiums on an unwanted, unneeded or under-performing life insurance policy – don’t surrender it or let it lapse – see its real value by using our on-line calculator to determine whether a life settlement is a better option for you. Use the funds to offset rising costs and to fund long-term care insurance, donate to your favorite charity or invest in property to leave to your estate.

IRA Charitable Giving law passes

Thu, 30 Oct 2008 23:16:42 +0000

If you are 70 ½ or older, a newly reinstated law allows you to donate up to $100,000 from your traditional IRA or Roth IRA tax-free to a public charitable organization. The money can also come from a SEP or a SIMPLE IRA as long as you are no longer contributing to these accounts.

Under the law, any money you donate to charity from your IRA will count toward the annual withdrawals you’re required to take from these accounts after reaching age 70½.

If you itemize your deductions, you’ll also come out ahead. That’s because taxpayers whose adjusted gross incomes exceed certain thresholds lose some of their deductions and personal exemption amounts. By not adding $1,000 to your income, this gift might help you keep your income below these levels.

Those in a position to take advantage of the IRA Charitable rollover include those:

· who are already giving at their deduction limit

· whose income level causes the phase-out of their exemptions or itemized deductions

· for whom additional income will cause more of their Social Security income to be taxed

· who wish to remove up to $100,000 from their taxable estate

Take advantage of giving opportunities like the above or through donating the proceeds of a life insurance settlement.