Give back by naming the American Floral Endowment as a beneficiary of a life insurance policy
This may be a good option if the existing beneficiaries of a policy have preceded you in death, or if you have beneficiaries for whom you have provided through other life insurance policies or assets. (The proceeds from group insurance as well as individually owned insurance can be given to AFE.) This designation can be changed if your circumstances change in the future. Any proceeds paid to the American Floral Endowment will qualify for any estate tax charitable deduction.
Donate a Policy that is Paid Up
Often, a person’s need for life insurance declines with age. A life insurance policy purchased years ago for family protection or to collateralize a loan may no longer be needed for that purpose. If so, ownership of the policy could be transferred to AFE. Because the gift is irrevocable, you receive an immediate income tax deduction. By making a gift of this essentially “idle” asset, you will receive a deduction and reduce your taxes.
Donate a New Policy or a Partially Paid Policy
You may have a policy that you have owned for a while but is not paid-up. You can transfer ownership to AFE and continue paying the premiums. You receive a deduction approximately equal to the policy’s current value along with additional deductions for continued premium payments. Or you can take out a new policy and deduct the premium payments. This is a way to assure a major future gift to AFE with minimal current financial outlay.
There are several benefits to giving a gift through life insurance:
- Allows you to make a substantial future gift through an asset you may no longer need
- May provides an estate tax deduction or, in certain circumstances, an income tax deduction
- Proceeds pass directly to AFE outside of the probate process
An Estate Gift at Work
Years ago, Mr. P took out a $60,000 life insurance policy to protect his wife and young family. Now he is a widower and has other assets to leave his children. He names the American Floral Endowment as his new beneficiary, with the proceeds going to establish a named scholarship fund at AFE. Mr. P will receive an estate tax charitable deduction for proceeds paid to the American Floral Endowment, and the satisfaction of knowing that he is extending a helping hand to those who will come after.
To find out more about gifts of life insurance, please contact AFE at (703) 838-5211.