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Gifts
of Life Insurance
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A gift
of a life insurance policy can often be the easiest gift to
make. Most people have life insurance policies and many have
outlived their original purpose. Perhaps you bought a policy
to provide for a college education that has been completed,
or to pay mortgage that has already been paid off. By contributing
your policy to AOTF, you will be entitled to a tax deduction
for its full cash value.
Here are the most
common ways to make a gift of life insurance:
1. Give a paid-up
policy - The policy has outlived its original purpose or
has been replaced by a new policy.
2. Buy a new
policy - This is a way to make a larger gift than you might
otherwise be able to make by naming AOTF as a beneficiary.
If you name AOTF as a owner and beneficiary, the premiums
you pay can be deducted on your tax return.
3. Give a single
premium policy - Purchase a single premium policy with AOTF
as the owner and beneficiary, and the premium payment is
tax deductible.
4. Add a beneficiary
- Name AOTF as a secondary or final beneficiary which means
AOTF becomes the beneficiary if your primary beneficiary(ies)
predeceases you. In this situation, there are no income
tax benefits but any proceeds AOTF receives from this policy
are not subject to federal estate tax.
Gifts of life insurance
are convenient, flexible, simple, and allow you to make a
significant gift which might not otherwise be possible.
For more information
about gifts of life insurance, please contact Mindy Hecker,
AOTF's Interim Co-Executive Director, at 301-652-6611 ext. 2558.
The examples cited
in this home page are for illustrative and informational purposes
only. Your personal situation may differ. Please consult your
tax or legal advisor about your particular situation.
The
American Occupational Therapy Foundation is a 501(c)(3), charitable,
non-profit organization. Gifts to AOTF are tax-deductible
to the extent allowed by law.
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