(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.