Here's a great way to support our future work while benefiting your loved ones at the same time.
Challenge: Patty is a single woman who has worked at the same company for more than two decades. A dedicated and loyal employee, she shows that same level of dedication to her favorite charity. Patty would like to leave a legacy after her lifetime, but she feels her current cash flow won't withstand an increase in yearly support. She also wants to create a gift plan with built-in flexibility in case she needs to change her mind for any reason. How can she accomplish her objectives?
Solution: Patty owns a policy on her life with a death benefit of $100,000. She prefers to continue owning the life insurance policy just in case she might need it in the future. So rather than donating the policy outright, she decides to name a beloved charitable organization as the primary beneficiary of 75 percent of her policy and her nephew Jake as the primary beneficiary for the remaining 25 percent. If Jake does not survive her, then his share will also add to her charitable legacy.
Designating multiple beneficiaries on your life insurance policy can provide us with a powerful future gift and provide for your heirs at the same time.
- No federal estate taxes will be assessed against the part of Patty's life insurance policy that is payable to charity.
- By keeping ownership of the insurance policy in her name, Patty will be able to borrow against its cash value if the need arises.
- Using life insurance, she will also be able to leave behind an inheritance for her nephew.
|Learn more about whether a gift of life insurance could fit your plans.|
Getting Started | Is This Gift Right for You? | Case Study | But What About the Kids? | How to Complete Your Gift | Action Items
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The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.