Legacy giving, also known as planned giving, is a meaningful way to leave behind a lasting impact on the causes and organizations you care about. By incorporating life insurance and annuities into your estate planning, you can maximize the benefits of your legacy gifts, ensuring they are both impactful and tax efficient. 

Legacy giving involves making a commitment to donating a portion of your estate to a charitable organization or cause. This can be done in several ways, including bequests, charitable trusts and gifts of life insurance or annuities. Incorporating legacy giving into your will allows you to support causes you are passionate about while potentially providing tax advantages for your estate.

Life Insurance as a Legacy Gift

Life insurance can be an effective tool for legacy giving. Here are some ways to incorporate it into your estate planning:

• Naming a Charity as a Beneficiary: You can designate a charitable organization as a beneficiary of your life insurance policy. Upon your passing, the charity will receive the policy's death benefit, which can significantly enhance its funding.
• Transferring Ownership of the Policy: You may also choose to transfer ownership of a life insurance policy to a charitable organization. This may qualify you for a charitable tax deduction for the premiums you pay on the policy.
• Creating a New Policy: If you wish to make a substantial gift, consider purchasing a new life insurance policy and naming the charity as the owner and beneficiary. This can provide significant future benefits to the organization.  

Annuities for Charitable Giving

Annuities can also play a role in planned giving. Here's how they work:

• You can name a charity as the beneficiary of your annuity to receive any part of it that has not yet been distributed upon your death.
• You can donate all or part of your Required Minimum Distribution (RMD) amount to qualified charitable organizations. This gives a gift to an organization that you want to support while being able to offset taxes.

Benefits of Using Life Insurance and Annuities

Incorporating life insurance and annuities into your legacy plan offers several benefits:

• Tax Advantages: Donations made through life insurance and annuities may qualify for charitable tax deductions, reducing your taxable estate and potentially lowering estate taxes.
• Financial Security: Annuities can provide you or your loved ones with a steady income stream for life, offering increased financial security while also benefiting your chosen charity.
• Significant Impact: Life insurance policies can result in larger gifts than might be possible through cash donations, making a more substantial impact on the charity.

How to Get Started

1. Identify Your Charitable Goals: Determine which causes or organizations you wish to support through your legacy gift.
2. Consult with Financial Advisors: Work with your agent along with financial, estate planning and tax professionals to explore the best options for your situation.
3. Review Policy and Annuity Options: Consider existing policies and annuities, and explore the possibility of creating new ones if needed.
4. Update Your Will and Estate Plan: Ensure that your will reflects your legacy giving intentions and is legally sound.
5. Communicate with Beneficiaries: Discuss your plans with your family and beneficiaries to ensure they understand your intentions and the impact of your gifts.

By thoughtfully planning your legacy giving with life insurance and annuities, you can leave a lasting legacy that reflects your values and supports causes you cherish. This strategy not only benefits charities but can also provide peace of mind to you and your loved ones.

Your Benefits
As an insured GBU member, you have access to LawAssure , an online platform that helps you create a will, power of attorney or trust and file it based on your state. You can also use LawAssure to create and store any instructions for the execution of your will or other information that you would want your loved ones to have.

Choose Your Legacy
Did you know that you can now establish a donor-advised fund with the GBU Foundation? This type of fund allows you to make regular tax-deductible contributions to your charitable goals and distribute donations to the 501(c)(3) organizations that you choose when you are ready.

GBU Life is the marketing name for GBU Financial Life (GBU), 4254 Saw Mill Run Blvd., Pittsburgh, PA 15227. Life insurance is underwritten and annuities are offered by GBU. Annuities are not short-term products. Products are subject to approval and may not be available in all states. Annuity withdrawals prior to 59½ may be subject to IRS penalties. No statement contained herein shall constitute tax, legal or investment advice, and you should consult with a legal or tax professional for any such matters. GBU Life offers access to services from LawAssure but is not affiliated with them.