Helping the Arts with Life Income & Life Insurance Gifts

December 11, 2015

A great way to assist your favorite theatre, dance troupe, symphony, museum…

charity-337Many of your favorite theatre companies, opera companies, symphonies and ballets need financial help at this time. Fortunately, private money can make a big difference. Patrons are coming to the rescue of these organizations with life income gifts and gifts of life insurance; financial moves that have perks for donors as well as ensembles.

Gift annuities. A life income gift, also known as a gift annuity, offers an arts donor some potentially superb benefits. A gift annuity is a simple agreement with an arts organization, by which you make an irrevocable gift of cash, appreciated securities or real estate. In return, you (and/or one other person you select) receive a fixed annual income that the arts organization is obligated to pay to you.

  • Usually, some of this income is tax-free. If you make a cash gift, part of the fixed income payments will be taxed as ordinary income and the remainder will be untaxed. If you contribute securities or real estate that you have owned for a year or more, percentages of the income you receive may be taxed as ordinary income or capital gains, while some of it may not be taxed.
  • You may also claim an income tax deduction in the year you establish the gift annuity – and if you fund your gift with an appreciated asset, you may eliminate a portion of your capital gains tax.
  • As a gift annuity can be immediate or deferred (i.e., income payments to you can start this year or in a future year), you have potential for enhanced annual income later in life if a gift is funded today with low-yielding assets.

Life insurance. A gift of life insurance is often welcomed by an arts organization, as it is self-completing – the funding objective linked to the gift is fulfilled when the donor passes away. If you make yearly planned gifts to a non-profit arts group, you can assign a percentage of your annual donation to a life insurance policy, therefore guaranteeing the perpetuation of your gift.

We have seen life insurance gifts work in several different ways. Here are just a few options:

  • You can gift a life insurance policy you now own to an arts group, donate a new policy you buy, or even have the arts organization purchase a policy on your life and pay the annual premiums (some states don’t permit this last option). You may claim an income tax deduction in the year you do this.
  • You can name an arts organization as the primary beneficiary of your policy. While that move won’t bring you an income tax deduction this year, it will bring you a federal estate tax deduction for the full amount of the proceeds payable to the non-profit arts group.
  • You could assign policy dividends to an arts organization. This creates a deduction as dividends are paid. You also have the chance to amplify the magnitude of your contribution: the dividends could buy a new policy, with the arts group as irrevocable owner and beneficiary.
  • Have you accumulated a great deal of assets in a deferred compensation plan or a supplemental retirement plan (SERP)? If so, you face the chance that your heirs might only receive about a quarter of that wealth after income and estate taxes. Some executives and business owners in this situation have exchanged a SERP or deferred comp plan for a split-dollar life insurance policy, which has let them legally avoid the above-mentioned income and estate taxes and direct substantial wealth to the arts.

Four things to remember with life insurance gifts. One, if you want to receive an income tax deduction in the year you make the gift, the gift has to be irrevocable – you must surrender ownership of the policy. Two, if you make an irrevocable life insurance gift within three years of your death, the amount of the gift will be included in your gross estate. Three, there is a ceiling on the annual charitable deduction you can take – 30% of adjusted gross income (AGI) for gifts to private non-profit organizations, and 50% if the non-profit happens to be a public organization. Four, remember that you can carry excess deductions on charitable gifts forward for up to five tax years.

At HFG Wealth Management, we embrace a holistic method of financial planning known as Financial Life Planning™. We believe this is a financially effective and personally rewarding approach to creating a practical, lasting financial plan. As financial professionals using the life planning approach, our purpose is to assist individuals and families in creating a long-term vision that is consistent with their core values. At HFG we recognize that life events and life transitions can impact your financial responsibilities and your vision of the future. We are here to provide you with tips and strategies to get you started and help you reach your financial and life goals at every stage. For more information, please visit or call 832.585.0110.



HFG Father and Son Team Ride with Team Strike for 31st Annual BP MS 150

May 6, 2015

ms-logoHFG Wealth Management was pleased to have Chris Rasberry, COO, and his 12 year old son ride in the 31st Annual BP MS 150 ride from Houston to Austin last weekend on Team Strike, LLC. As the largest fundraising bike ride in the country, the BP MS 150 connects thousands of cyclists of all skill levels, along with volunteers and supporters, as they embark on a shared journey to drive awareness for multiple sclerosis and raise over $18 million to help those impacted by MS. (more…)

HFG Wealth Management Marches on for March of Dimes

May 4, 2015

March_for_BabiesHFG Wealth Management had the privilege to serve as a sponsor for the March of Dimes Montgomery County March for Babies Walk on April 25, 2015. The March of Dimes mission is to help mothers get to full-term pregnancy and research problems that threaten the health of babies. HFG Wealth Management employees worked to raise funds for this very important cause.

“HFG Wealth Management was very proud to serve as a sponsor for March of Dimes. As a family oriented business, we know how impactful the effects on family this can present. We were very fortunate to be presented this opportunity to sponsor such a worthwhile and impactful event for the community,” Larry Harvey, Founder and Chief Executive Officer of HFG Wealth Management said. “Our team was truly blessed to support the mission and foundation of March of Dimes,” said Harvey.

The March of Dimes walk brings together families, companies and volunteers to raise money to support lifesaving research, community education programs and advocacy efforts that help moms have healthy, full-term pregnancies and give babies a strong, healthy start in life. For more information about this year’s March for Babies, visit

HFG Wealth Management Partners with Bridgewood Farms

May 1, 2015

HFG Wealth Management recently partnered with Bridgewood Farms, the non-profit that serves mentally disabled adults in Montgomery County since 1967 for their seventh annual “Around the World in 180 Minutes” wine tasting event to benefit the clients of Bridgewood Farms.

silent-auction“HFG Wealth Management was proud to serve as a sponsor for Bridgewood Farms because we share similar core values. Much like our culture here at HFG, we know intrinsically that it is our personal, if not spiritual duty to lift up those in our community who cannot do for themselves. We knew partnering with Bridgewood Farms, and their mission to help those with intellectual and developmental disabilities, was an organic fit,” Larry Harvey, Founder and Chief Executive Officer of HFG Wealth Management said. “I sincerely enjoyed the opportunity to learn more about Bridgewood Farms and the service they provide to our community,” said Harvey.

Around the World in 180 Minutes offered wines from fifteen countries that were sampled with hors d’oeuvres, cheese and fruit. A live and silent auction, wine pull and special projects bidding also supported the event. Clients of Bridgewood Farms made handcrafted wine glass charms attached to the wine glasses offered at the event as a special keepsake of the event. HFG Wealth Management served as the wine glass sponsor for the event.