Leveraging charitable gifts with life insurance

Description

Abstract: Using life insurance to make contributions to the charities of your choice can be a win-win for both parties. You make tax-advantaged gifts while paying on the “installment plan” with minimal impact on your estate, and the charities receive substantial gifts with a predictable value. This article explains the basic concepts behind such contributions and what you need to consider regarding the tax impact of the gift. A sidebar provides useful information on income limitations for charitable contribution deductions for public charities and private foundations.