Life Insurance: Case Study
Here’s a way to have enough to fund your support of our future work and benefit your loved ones.
Challenge: Throughout their married life, Judy, 60, and her late husband, Frank, regularly made donations to important causes in their community. Now Judy donates nearly $5,000 each year to continue that legacy. In fact, she dreams of someday making an even more substantial gift in memory of her husband. But she also wants to leave an inheritance for her five grandchildren. How can she satisfy both desires?
Solution: Life insurance is the answer for Judy. She owns a policy on her life with a death benefit of $200,000. By changing the beneficiary designation and transferring ownership of the policy to the charitable organization of her choice, Judy accomplishes her dream donation in Frank’s memory. Then she divides the assets in her estate equally among her five grandchildren, ensuring that they will each receive an inheritance.
- Judy is eligible for an immediate income tax charitable deduction equal to the fair market value of the policy (similar to the cash value) or her premiums paid, whichever is less.
- If the policy requires premiums to be paid in the future, she can stipulate that part of her $5,000 annual cash gift be used to cover the annual premium cost.
- Using life insurance, Judy makes a significant future gift without reducing the amount of her grandchildren’s inheritances.
Before deciding whether giving life insurance makes sense for you, consult with your professional advisor or estate planning attorney. We would be happy to provide assistance to you and your advisors at no obligation.
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Please contact Tim Enstice at 757-962-8213 or email@example.com if we can answer any questions you have about this way to support animals.