Estate planning goals are multifaceted, but a common challenge is how to leave a generous inheritance to your family while continuing to provide for the ministries you supported during your lifetime. Is there a way to accomplish both?
Yes. Through strategic planning that multiplies your current assets, you can bless family and ministry while also obtaining some attractive tax advantages during your lifetime.
One creative approach involves the use of a life insurance policy in conjunction with a Charitable Remainder Trust.
The idea behind this approach is that the life insurance policy will be used as an inheritance for your children and grandchildren. This allows you to multiply the benefit of your assets to your family by purchasing a life insurance policy for their benefit that will provide them a greater inheritance than you would have been able to leave them through other assets.
The purpose of the Charitable Remainder Trust would then be to generate the annual income needed to pay the life insurance premium. A Charitable Remainder Trust can be funded with cash or appreciated assets like stock or real estate. The income from this trust would continue for your lifetime, and that income would then be used each year to pay the life insurance premium.
At the end of your lifetime, the life insurance will pay out to your children and grandchildren as inheritance, and the remainder of the Charitable Remainder Trust would pass to the ministries of your choice.
In addition, funding a Charitable Remainder Trust not only provides you with a potential charitable income tax deduction, but also may provide for a bypass of capital gains taxes on appreciated assets.
Through this creative approach, your assets are multiplied to bless both your family and ministry.
Let the Planned Giving team at AGFinancial work with you to accomplish all of your planning goals. Call 866.621.1787 or email plannedgiving@agfinancial.org.
