Terry Bork CLU ChFC, President   |   Aurum Insurance Services   |   D: 440-605-7230   |   C: 440-666-6032   |   tbork@auruminsurance.com   |   www.auruminsurance.com

Charitable Planning Strategies For Legacy Assets

"We make a living by what we get, but we make a life by what we give" - Winston Churchill

Identifying an effective giving strategy is the first step in maximizing the impact of your Legacy Assets dedicated to charity. The best strategy meets the needs of you the donor and the charity.

Basic Initial Decisions

  • Whether to make the gift during or after your lifetime,
  • The types of assets or property to donate
  • How much control you want to have during your lifetime
  • The impact of the gift on your tax situation

Lifetime Gifts

A lifetime gift provides the satisfaction of supporting the charity while alive as well as an immediate income tax deduction.

Testamentary Bequests

Testamentary bequests made in a will or through a revocable living trust give you full and unlimited access to the property prior to death. In addition, you receive an unlimited estate tax deduction for property left to a charity in your estate plan.

More Advanced Techniques

There are more complex ways to make charitable contributions that may better fit your needs. You can, for example, split property rights with a charity, giving the charity the rights to a property while retaining the income the property generates. Examples include:

  • Charitable Remainder Trusts (CRT)
  • Charitable Lead Trusts (CLT)
  • Pooled income funds
  • Charitable gift annuities

You can choose an approach that offers more control over how a charity uses your contributions including:

  • Donor-Advised Funds
  • Private Foundations
  • Supporting Organizations

Life Insurance and Charitable Giving

With key donor life insurance, a charity purchases and pays premiums for an individual life insurance policy on your life if you have a pattern of giving to the organization.

The charity uses its assets or your gifts to pay premiums. The policy’s benefits are paid to the charity. The charity could also purchase individual policies on a number of donors.

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