Comments on: Charitable Gifting 101

By: basicmoneytips.com

basicmoneytips.com — Mon, 15 Mar 2010 11:43:32 +0000

This is an interesting article. I had heard a pastor mention something about buying a life insurance policy and making the church the beneficiary.

I am a regular giver, but recently married with a young son now. Giving has stretched our budget a little tighter. I plan on leaving something to the church when I pass, but I am not sure how to structure that yet.

This seems like a good idea to consider.
Thanks

By: Evan

Evan — Sun, 14 Mar 2010 15:56:19 +0000

Thanks for this opportunity Bob! I hope this helps out a few Churches.

If the policy is owned by the charitable organization then the proceeds won’t be included in your estate because you don’t have the ability to direct the beneficiary.

If you own the policy and direct the proceeds to a Church or charitable organization then the proceeds we’ll be in your estate but you’ll receive an estate tax deduction.

By: innocriss

innocriss — Sun, 14 Mar 2010 15:50:13 +0000

hi Evan,
It is a very positive investment; investing in God’s house. Donating is something we all need to practice. For me, i think first of stabilizing my financial situation before thinking of other bodies.

By: Darren

Darren — Sun, 14 Mar 2010 05:41:36 +0000

Evan, nice post on various giving options. If I remember correctly these methods also remove the proceeds from being included in your estate.

In the second example of donating an old policy to the church, does the three-year rule of surviving the transfer by three years before the proceeds are excluded from your estate still apply?

By: BibleDebt

BibleDebt — Sun, 14 Mar 2010 00:42:29 +0000

Helping yourself first (by paying off your debt) is the best strategy in my mind for giving consistently. If you make this a priority, you can have yourself in a position of prosperity and increase your giving relatively soon. Debt free gives you amazing options.

Thanks for the post!