Unique Generosity Tools for Estate Planning at The Signatry

By The Signatry 12 months ago. Generosity ToolsEstate PlanningGenerosity StrategyInheritance

Donor advised funds are tools not only for today’s generosity but also for a legacy that endures even after your passing. Two common aspects in estate planning are life insurance and charitable beneficiaries. Both provide potential ways to maximize the power of your donor advised fund. Learn more about how to integrate lasting generosity by using these creative fund options.

Life Insurance

There are a couple different strategies that can be used with life insurance policies to grow generosity:

    1. Name your donor advised fund at The Signatry as the beneficiary of the policy.
      By doing this, the proceeds of the death benefit of the policy will be placed in your DAF with The Signatry and granted to any charities named beneficiaries of the fund. While there is not an income tax deduction in this strategy, this option still allows for incredible generosity to flow from the proceeds of the policy when the policy owner passes away.
    2. Name The Signatry as the policy owner and your DAF as the beneficiary of the policy.
      By donating a life insurance policy, The Signatry becomes the owner of the policy and continues paying the premiums. The donor may receive a charitable income tax deduction, and when the donor eventually passes away, the proceeds from the policy will go to his/her DAF to be granted out to charities named as beneficiaries of the fund.

For a more in-depth overview of these potential options, we encourage you to connect with our team and learn more about how your scenario matches a specific strategy.

Charitable Beneficiaries

We typically think of naming children as beneficiaries within estate plans, so what about including charities? There are many ways to include generosity in your estate plan, so here are a few ideas to begin the conversation:

    1. Name your donor advised fund as a beneficiary in your will.
      There are multiple types of bequests that could be used to designate how your estate will be distributed. Specific dollar amounts could be specified to be contributed to a donor advised fund upon a donor’s passing, or it could be as simple as a portion of the estate is allocated to be contributed to the fund. We encourage you to discuss options with your professional advisor and see how a donor advised fund works best for the generosity you wish to see carried on after your passing.
    2. Name your donor advised fund as a beneficiary of your charitable remainder trust.
      Charitable remainder trusts (CRTs) are often used in estate planning, but they present the challenge that beneficiaries must be set when the trust is first established. If wishes change later, it can be expensive to modify the CRT. By naming your donor advised fund as the charitable beneficiary, this provides greater flexibility. Within the DAF, the donor and his/her family can modify the charities that will be supported. An added benefit is if the donor wishes to include their financial advisor, the advisor can manage the assets in both the CRT and the DAF.

These ideas are just the start of a multitude of ways you can include generosity in your estate plans, and we encourage you to discuss options with your professional advisor. You can create a unique path that supports your goals, both financially and spiritually, all through your donor advised fund. This ultimately is the heart of The Signatry—we want to both inspire and to facilitate incredible generosity.

Disclaimer: The Signatry does not provide legal, tax, financial or other professional advice. You should consult professional advisors concerning the legal, tax, or financial consequences of your charitable activities.

The Signatry
The Signatry

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