Check to see if the organization you want to leave money to is an eligible charity in the eyes of the Internal Revenue Service. Life insurance trusts can be designed to keep the proceeds of a life insurance policy out of your estate and give your estate the liquidity it needs. Generally, you can fund a life insurance trust either by transferring an existing life insurance policy or by having the trust purchase a new policy. With proper planning, proceeds from a life insurance trust may pass to your beneficiaries without income or estate taxes. This gives them the cash needed to pay for estate taxes or other expenses, such as debts or funeral costs.
Estate planning is very complex and is subject to changing laws.
This document by no means covers all estate planning methods. Be sure to seek professional advice from a qualified attorney, CPA or estate planner. The money you spend now to plan your estate will mean more money for your beneficiaries in the long run. Permission to reproduce for non-commercial purposes with this copyright notice is granted.