Life insurance provides a simple way for you to make a gift while you continue enjoying tax benefits throughout your lifetime.
You can make a gift when life insurance is no longer needed by either giving a paid-up policy or continuing to pay premiums. You may receive a number of tax benefits, including reduced estate and income taxes. And, if you choose to continue paying premiums through us, you will be entitled to a charitable contributions deduction of up to 50 percent of your adjusted gross income.
You can replace the dollar value of an asset transferred to us via a life insurance policy. Or, you can use regular payments from a charitable gift annuity or charitable remainder trust to establish an irrevocable life insurance trust. The trust can purchase insurance on your life to benefit your heirs. This way, you can make a gift and replace the value of this gift within your estate using life insurance proceeds.
Giving through us using a charitable remainder trust allows you to receive income for the rest of your life, with the knowledge that whatever remains will benefit your community.
After you transfer assets into a trust, the trust pays you or a designated beneficiary regular income payments. Upon the beneficiary’s death, or after a defined period of time, the remaining assets in the trust transfer to the Foundation.
When establishing the trust, you may choose to receive a fixed income or one that changes with market conditions. It's possible that income from the charitable remainder trust may add up to more than interest and dividends you earned from holding the assets.
You can use it to supplement your own lifestyle or that of another person. You can start receiving annuity payments immediately, or defer them to increase your charitable income tax deduction.
A portion of the income may be a tax free return of principal, while some is taxed as ordinary income or capital gains. The amount of annuity paid and the tax deduction received depends on the age of the recipient and the current annuity rate (as established by the IRS).
Options for Your Charitable Remainder Trust
- Annuity trust pays you a fixed dollar amount.
- Standard unitrust pays you an amount equal to a fixed percentage of the net fair market of the trust and is recalculated annually.
- Net income unitrust pays you the lesser of the fixed percentage specified by the trust agreement or actual trust income; some net income unitrusts allow you to make up deficiencies in past years.
- Flip unitrust is a net income unitrust that converts to a standard unitrust upon a triggering event, such as the sale of an asset used to fund the trust.
Giving to the Foundation through a charitable gift annuity allows you to arrange a generous gift to your community, while providing yourself a new income source you can count on for the rest of your life.
We will establish a contract with you that combines immediate annuity payments with a deferred charitable gift. You receive a stream of income that is fixed, regardless of market conditions. Then, upon your death, we set up a charitable fund on your behalf.
Income from your charitable gift annuity may add up to more than the interest and dividends you earned from holding the assets. You can use this income to supplement your own lifestyle, or that of someone else.
You or your designee can start receiving annuity payments immediately, or defer them to increase your charitable income tax deduction. A portion of the income may be a tax-free return of principal, while some is taxed as ordinary income or capital gains. The amount of annuity paid and the tax deduction received depends on the age of the recipient and the current annuity rate (as established by the American Council of Gift Annuities).