Many people have reached a point where life insurance is no longer needed. Also, younger persons find insurance gifts appealing because they are able to make large donations with a modest premium payment. You can either keep the policy and name SCCF as the beneficiary or you can give the policy to SCCF.
If you give the policy to SCCF now, you will be entitled to take a charitable deduction equal to the cash value of the policy. If annual premiums are still to be made and you continue to pay them, those premiums will become tax deductible each year. In addition, the face value of the policy is removed from your estate.

 

 

 

 

 

 

 

Mr. Culbreth
Many years ago, Mr. Culbreth names his granddaughter, Julia, the beneficiary of a $50,000 whole life policy. Now he wishes to donate the policy to SCCF. The present value of the policy is $25,000 and the annual premiums are $1,500. If Mr. Culbreth assigns the policy to SCCF, he is entitled to a charitable contribution deduction of $25,000. Since he will continue to make premium payments, he may also deduct the $1,500 each year. In addition, the $50,000 face value of the policy is removed from his estate.
Planned giving is a gift that delays the complete benefit to the charity until some future date. The charity may not receive full benefit for one or more reasons, such as your keeping the income from the gift property or the actual transfer date of the gift is postponed to the future.
Wills, life insurance policies, charitable remainder trusts, charitable gift annuities, and retirement plans are the most common methods of making planned gifts.

 

 

 

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