Behind every charitable giving plan is a faithful steward seeking to support the Catholic schools, parishes, churches and organizations that have shaped their lives. Charitable giving can take on many forms, from a simple bequest in a will to a complex plan designed to distribute gifts to multiple foundations and charities. However, for many donors, it’s common to wrestle with supporting a chosen charity or providing for their children.
Fortunately, charitable giving and family financial goals do not have to compete with one another. With the right planning and guidance from a qualified advisor, it is possible to develop a strategy to support charitable goals and provide long-term financial security to loved ones.
One tool that I have found invaluable in this process is life insurance. A life insurance policy can help individuals leave a more meaningful financial legacy than they could have created on their own. For example, someone may be able to leave a larger financial gift to family members or a charitable organization through a life insurance policy, even if they never had the opportunity to save that amount in their lifetime.
Life insurance provides policyholders with greater control and flexibility, as they can decide exactly how to divide death benefits between beneficiaries. For example, policy owners can split proceeds equally between beneficiaries or customize distributions based on their goals and needs.
I often remind people that one of the most important steps in the planning process is checking beneficiary designations. Beneficiaries are the people or organizations who can receive certain types of assets upon a person’s passing, such as life insurance benefits and retirement accounts. While this seems straightforward, many people do not keep their beneficiary designations up to date, or they haven’t even set up beneficiaries for certain accounts, like 401(k)s. That can significantly impact passing assets on to heirs.
An important point to know is that family structures can be more complex today. Divorce, remarriage and blended families have become more common, which impacts estate plans and inheritances. This reality makes it even more important for people to regularly review beneficiary decisions and make sure they align with current wishes.
When beneficiary planning and life insurance work in conjunction, donors can provide for loved ones, support meaningful causes and create a legacy that lives on. The first step in the process is to review current estate plans, beneficiary designations and life insurance coverage with an experienced advisor. With professional help, you can ensure your values, Catholic faith and generosity continue to strengthen the causes you love and provide potential support to your family for generations.
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Looking for more information? Please reach out to David or Chris at the Catholic Foundation.
David Eickhoff: Executive Director
Email: deickhoff@catholicfoundation.info
Phone: 320.258.7657
Chris Backes: Planned Giving Coordinator
Email: cbackes@catholicfoundation.info
Phone: 320.257.2139