Invest in Your Community with a Gift of Life Insurance
Donate a policy or name a charity (or the PineBelt Foundation) as a partial beneficiary of the death benefit.
If you don’t have liquid assets right now but want to support your favorite charity, a gift of life insurance may be a good option. While you retain ownership of the policy, there is no charitable deduction for the value of the policy when you designate the PineBelt Foundation as the beneficiary or for subsequent insurance premiums. However, proceeds payable to the PineBelt Foundation at your death will not be subject to federal estate taxes.
Why Give Life Insurance?
- The amount of your gift is certain – assuring that your desire to support your community is met.
- The proceeds from a life insurance policy are paid promptly and are not part of the probate process.
- Life insurance is a “quiet” gift – it is not a matter of public record.
- Life insurance gifts can be used to replace assets gifted to your community. Your family can receive the life insurance proceeds free of gift or estate taxes if the policy is owned by the PineBelt Foundation.
How to Make a Gift of Life Insurance – There are three ways to make a gift of life insurance to your community:
#1 – With an Existing Policy – Do you have a policy that was purchased several years ago but the need for that coverage no longer exists? Instead of cashing in the policy for its cash value, consider contributing the policy for the benefit of your community.
By changing the ownership and beneficiary of the policy to The Greater PineBelt Community Foundation for the benefit of your community, you will receive a charitable income tax deduction. Additionally, if you were to make future annual gifts of the policy’s premium, you would receive an additional charitable income tax deduction each year.
#2 – By Beneficiary Designation – Perhaps your need for the life insurance coverage continues. Instead of making a gift of the policy, you can choose to designate The Greater PineBelt Community Foundation as a contingent beneficiary of the policy for the benefit of your community. Your community would receive the proceeds only if your other beneficiaries died before you. If your need for the life insurance coverage continues, but at a lower level, name the PineBelt Foundation as the beneficiary of the portion of the policy’s proceeds that are no longer needed.
#3 – With a New Policy – Through the multiplier effect of life insurance you can make a substantial gift to your community on the installment plan. When you purchase a new policy and name the PineBelt Foundation as the owner and beneficiary for the benefit of your community, the gift you make of the premiums become fully income tax deductible. Thus, for pennies on the dollar you guarantee that your community will receive a meaningful gift in the future
We encourage you to work with your lawyer or financial advisor as you consider these options.
Please click here for a brochure on how to invest in your community through a gift of Life insurance.
For more information please contact your Professional Advisor or Theresa Erickson, Executive Director at contact@PineBeltFoundation.org or call 601.583.6180