Gifting Life Insurance
Who can I give life insurance to?A beneficiary can be an individual, charity, a company or trust. If your beneficiary is an individual, they can be related to you, one of your kids, a husband or wife, a friend or or anyone else you happen to know. Charities are a common type of beneficiary as well.
What value is used to determine my tax deduction if I change the ownership of my life insurance policy to a charity?The paid in cost basis of the policy or the fair market value of the policy, whichever is lower.
How to gift life insurance proceeds without taxAs long as your life insurance has not converted to a modified endowment contract, there will not be any tax due.
Who pays tax on personal life insurance given as a gift?No one will be required to pay tax on personal life insurance given as a gift.
Do colleges like receiving life insurance as charitable gifts?Yes. Other nonprofits, like Believe in Me, also enjoy the benefits of receiving life insurance proceeds as a charitable gift.
Is a life insurance planned gift revocable?If you own the life insurance policy, you are able to change the beneficiary at any time. if you are changing ownership of the life insurance policy to a charity to gain the tax benefits, you will not be able to revoke your planned gift.
Can you deduct life insurance premiums + gifting?You can maximize your tax savings if you make a cash donation to the charity, restricting use to making premium payments on your life insurance policy.
Can a fractional part of a life insurance policy be gifted?Yes. You may gift a % or the entire policy to charity.
Can you gift life insurance premium payments?Yes, but you can maximize your tax savings if you make a cash donation to the charity, restricting use to making premium payments on your life insurance policy.
Own A Life
Family Is Financially Stable
Want To Potentially Save Money On Tax
Who is a good candidate for making a gift of a life insurance policy?
Life Insurance Companies
Have More Questions About Gifting Your Life insurance To Believe in Me?
Talk To One Of Our Experts.
As Chief Executive Officer, I help people understand how they can save money on taxes by making a qualified charitable distribution. What does that mean? I am the person responsible for cultivating relationships with individuals who may be interested in making these types of gifts. I’d be happy to sit down, get to know you in person, and share more information about our program.
Chief Executive Officer
Julie Wukelic, MBA
As Development Director I oversee all of the organization's fundraising and help manage relationships with our company's financial partners. My quests include planning fundraising events, interacting with new and former donors to encourage ongoing contributions, and helping seek out opportunities for financial support through grants, sponsorships, long-term giving, qualified charitable distributions, and more. I also want to maintain a respectful reputation for our Believe in Me Foundation and any nonprofit we represent. After all, it is all about giving back to those kids less fortunate than ourselves.
I have been fortunate enough to have great mentors throughout my life, and I understand that I would not be the individual I am today without my parents, mentors, and coaches coming alongside me when I needed it most. It is a privilege and my duty to return the favor. I have had a heart for those going through difficult times since I was in middle school and began going on mission trips to build homes in Mexico and feed the homeless in San Francisco. This position provides the opportunity to combine my desire to help and serve, with my passion for finance and maximizing opportunities for all parties involved.
Volunteer Charitable Giving Advisor
Many people purchase life insurance to provide financial support for their loved ones in the event of their death. However, if your beneficiaries are financially secure and will not need the full death benefit, you may want to consider donating a portion of the money to charity.
There are many great organizations that rely on donations to continue their work, and your contribution could make a big difference. Additionally, giving to charity can be a way to leave a lasting legacy. By donating part of your life insurance death benefit, you can help to make the world a better place and provide support for causes that are important to you. If you’re interested in joining this group of people, keep reading to learn more.
This question often comes up when you meet with your financial planner or estate attorney and are discussing end-of-life decisions. Roughly 10% of people who own life insurance policies use it as a way to leave a legacy when they pass.