Youth In Need can benefit by being either the beneficiary or the owner of a life insurance policy. This gift has modest out-of-pocket costs and is particularly attractive if the donor has a paid-up policy that is no longer needed for its original purpose.
Ways to invest in Youth In Need’s programs through a life insurance policy include gifting:
- A paid-up policy in which the deduction is equal to the replacement value if all rights of ownership are transferred to Youth In Need.
- With a policy where premiums continue to be paid. If the donor continues to pay the premiums on the policy, a contribution deduction is allowed for the payments. Again, all rights of ownership are transferred to Youth In Need.
- A policy where Youth In Need can be named as the charitable beneficiary. This designation does not yield an income tax charitable deduction, since the donor has not relinquished ownership of the policy. Under such circumstances, the proceeds of the policy are included in the donor’s estate at death. An estate tax charitable deduction does offset the inclusion.
- A policy where a donor may name Youth In Need as sole beneficiary of a group life insurance plan if the insurance in excess of $50,000. This is allowed because the employee must recognize taxable income based on the cost of the coverage over $50,000.
To leave a legacy for future generations, contact Rob Muschany, Chief Development Officer, at 636-757-9348, or contact your money manager.