A gift to Touched by Grace through beneficiary designations has several benefits:

  • By donating a life insurance policy that you no longer need, you can make a significant gift at little cost to you.
  • On a policy that is not yet paid up, in some cases, you can deduct the premium payments that you are making on this policy to receive an income tax deduction for the value of the policy.
  • Retirement plans are often the most heavily taxed assets in your estate. Most of the taxes can be avoided if the plan balance is given to a charity.
  • If you intend to give some assets to your children or other individuals and some to a charity, consider making the charitable gift from the balance remaining in the qualified plan. The charity will not owe income tax upon receipt of the gift, whereas designated individuals will, and your estate will receive an estate tax deduction equal to the value of the plan balance given.
Planned giving allows you to maximize your income tax deduction, reduce your estate tax burden, and provide income for those significant in your life. Planned gifts typically come from a donor’s assets rather than income and can be either outright or deferred. Because each of these methods have specific tax advantages, we recommend you consult your personal financial and legal advisors.

For more information about these giving options, please contact the administrative offices of Touched by Grace at info@tbgrace.org or by phone at 615-332-9152.