How to Maximize your Charitable Giving

Say you invested $1000 in a stock that has grown to $50,ooo.  You want to share this with both a charity

and your children in the most advantageous way possible.  Can it be done?

Yes, by purchasing a life insurance policy in the amount equal to the value of the stock.  This will help ensure that your kids will ultimately receive a benefit commensurate with the value of the donated stock.

By donating the stock to the charity, any appreciation in the stock’s value will not be taxed.  In addition the income tax benefit generated by this donation based on fair-market value of the stock will reduce your income taxes.

Ultimately, the money saved from the tax deduction can be used to help offset the costs associated with the life insurance policy. The end result truly is a “win-win-win” situation. The charity wins because it receives the full value of the stock, your children win because they eventually receive a life insurance death benefit that replaces some, or all, of the value of the stock, and you win because you get a maximized charitable income tax deduction.

Sound confusing?  Give me a call and we can review your options and determine what is the best option for you.
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