How to Gift Life Insurance to a Trust

Gift of Life Insurance

Another way to pursue your philanthropic agendas and enjoy tax deductions is by bequeathing the remainder of your life insurance to your favorite charity after the insurance policy has finished serving its purpose.

For example, a policy that you took years ago to cover your minor children’s needs won’t be useful to them now that they are adults and financially independent. On the other hand, turning the life insurance cover into a gift is beneficial because your favorite charity will thrive, and you will be due for charitable income tax deductions.

How to bequeath your life insurance to a trust?
Making a gift of life insurance is quickly done by getting in touch with your life insurance provider and requesting a beneficiary designation form, then including your chosen charity as the recipient of the payments from the policy.

Advantages of gifting your life insurance

You can claim charitable income tax deductions.
If the charity decides to keep paying premiums and maintain the policy to maturity, you’ll be due for extra tax deductions. At maturity, the charity receives the proceeds of the policy.
If the charity decides to cash in the policy, you will see your gift at work.

Are you planning to use gift vehicles in your estate planning?

With an estate attorney’s help, you can set up charitable trusts and gifts of annuities.
Charitable giving is a fantastic estate planning tool; these gift vehicles allow you to donate to the charities of your choosing, reduce your tax burdens and receive dependable income for life.

Advanced Estate Planning
Living Trusts | Irrevocable Trusts

What is an advanced estate plan?

It’s where your estate combines businesses, properties, intellectual property, blended families, and complex family matters. As a trustor/grantor, it’s crucial to have all your i’s dotted and t’s crossed in this litigious environment.  

Now, some people believe it’s ok to search for an “estate planning lawyer near me” and that drafting an estate plan is routine.  With the growth of trust and probate litigation, it’s obvious it’s not.  When it comes to advanced estate planning, a deep-court experienced attorney is always a great choice.  Hess-Verdon leads the way!

Our living trust lawyers use sophisticated estate planning and wealth preservation techniques to assist individuals, families, executives, and owners of closely-held businesses in preserving and protecting their assets and tailor plans to meet each client’s objectives.

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We counsel clients on estate and tax planning, wealth preservation, multi-generational tax and estate planning, asset protection planning, business succession planning, charitable planning, and related legal matters. We assist families in dealing with family legal issues affecting seniors and disabled children or family members with special needs.