|
LIFE INSURANCE
Life insurance is a flexible charitable giving tool that can be used to suit your individual financial needs while also supporting The Council of Churches of the City of New York and its programs.
• You can name your favorite charity a beneficiary of an existing life insurance policy. Upon your passing, the full amount of your policy will be given to the charity of your choice. Although the proceeds from the policy will be included in your gross estate, the full amount received by your favorite charity may be deductible as a charitable deduction. To make your favorite charity a beneficiary of an existing life insurance policy, you can simply request a beneficiary designation form from your employer or insurance company. Most forms require the following information:
............1. Your favorite charity full legal name
............2. Charity permanent mailing address
............3. Charity federal tax identification number
............4. Your relationship to the beneficiary (charity)
• You can name your favorite charity the owner and beneficiary of an existing paid-up life insurance policy. You may be able to deduct an amount equal to the fair market value of the policy, or your cost basis, whichever is less. Since your favorite charity becomes the owner of the policy, the proceeds will not be included in your estate for tax purposes.
• You can make your favorite charity the owner and beneficiary of a policy on which you are still paying premiums. You may be able to deduct an amount equal to the approximate cash value of the policy or the policy's cost basis, whichever is less, in the year in which you give the gift. You may also be able to deduct any future premium payments, and the proceeds will not be included in your estate for tax purposes.
• You can purchase a new policy and make your favorite charity the owner and beneficiary. Because your favorite charity is the owner, you may be able to deduct premium payments as charitable contributions for as long as the premiums are paid, Subject to state limitations. In addition, the proceeds will not be included in your estate for tax purposes.
Please review the options available and discuss with your legal advisor and/or tax advisor to help you decide the best option for you. To learn more about Life Insurance, Email us or call us at (212) 870-1020 so that we can assist you.
|
