We have recently had success using life insurance to reduce clients’ taxable estates and simultaneously leave an endowment to a non-profit, church or charity. It’s a solid tax-saving strategy and a really inexpensive way to leave a legacy.
Houston, TX (PRWEB) March 27, 2013
There is perhaps no time of year when wealth preservation strategies are more at the forefront than during tax season, when the bottom line—earnings and savings—are in focus.
Millions of Americans make donations of cash and property to charities each year—yet while these donations can provide valuable tax deductions, the role life insurance can play in charitable giving is often overlooked.
For high-income individuals, life insurance itself can directly fund a non-profit or charity gift, permitting a donor to make a substantial future gift, with immediate tax benefits. When the charity is the owner and beneficiary of a policy, the premium payments donors make are tax deductible.
Upon the death of the insured, the charity receives the entire face amount of the policy in one large lump sum. There is no limit on the size of the policy that may be donated, since charitable donations have no ceiling for estate tax purposes.
Pasadena Insurance Agency, Inc. CFP Ronnie Karkowsky calls the strategy a win-win situation for donors and charities.
“Recent U.S. tax rate increases have top earners looking for viable ways to reduce tax liability,” said Karkowsky. “Life insurance can be used for many things: family protection, key man or buy sell for businesses and estate planning to cover future estate tax liability. We have recently had success using life insurance to reduce clients’ taxable estates and simultaneously leave an endowment to a non-profit, church or charity. It’s a solid tax-saving strategy and a really inexpensive way to leave a legacy. “
For more tax-saving tips and information about Pasadena Insurance Agency, visit http://www.pasins.com. Also, join our Facebook community and connect with us on Twitter @PasadenaInsAgcy.
About Pasadena Insurance Agency:
Pasadena Insurance Agency, Inc (PIAI) is a Trusted Choice® independent insurance and risk management firm. They are a third-generation, family-owned, boutique independent insurance agency offering property & casualty insurance, life & health insurance, and consultative risk management services to individuals and small-to medium-sized businesses.
Having been in business for over 75 years, they have access to the majority of the insurance marketplace either through direct appointments or intermediaries resulting in the appropriate alignment of insurance carrier to clients. PIAI offers a friendly, community-based agency with personalized customer service, while also providing the capabilities of a large corporate agency with established industry relationships and decades of experience. For more information, please visit http://www.pasins.com.