REPLACING GIFTS WITH LIFE INSURANCE

Charitable gifts of life insurance policies and their proceeds have been previously discussed. Another use for life insurance in charitable planning is to use this financial tool to arrange for a charitable gift to be “replaced” for your heirs in your estate.

For example, you might use the tax savings and all or a portion of the income generated by a charitable remainder trust or other gift plan to purchase life insurance benefiting your heirs. That way, your donor advised fund at Hope receives the contribution you intend, while your heirs enjoy their inheritance–often at little cost to you or your heirs. Check with your life insurance professional or other advisors for additional information regarding this option.