GIFTS OF LIFE INSURANCE TO JFS ORLANDO
Millions of Americans make donations of cash and property to the charities of their choice each year. However, while these donations can provide valuable tax deductions, many donors are left wishing that they could do more for the charities that they love and support. Some donors would therefore be wise to consider using their life insurance policies as a more effective means of leveraging the support they provide. In many cases, this can be the most effective and convenient asset that they can give.
Donations of life insurance policies by naming JFS Orlando as the beneficiary can provide a much greater benefit to the donor as well as to JFS. Gifting a life insurance policy can greatly reduce the donor’s taxable estate, which can save thousands of dollars in estate taxes. Gifting a policy can also yield a current income tax deduction of the policy’s fair market value. Of course, this deduction can be quite significant in some cases.
Perhaps most importantly, JFS Orlando will receive the entire face amount of the policy upon the death of the insured. This is usually going to be many times the amount that they would receive from the donor, and can represent a substantial windfall. However, the cost to the donor will only be a small fraction of that amount each year, and any premiums paid after the date of the gift will be deductible as well.
There is also no limit on the size of the policy that may be donated, since charitable donations have no ceiling for estate tax purposes. This strategy also does not impede the donor’s current investment strategy, and can also provide a useful way to dispose of an unwanted policy that was originally purchase to cover a need that no longer exists.
Naming JFS Orlando as a beneficiary also ensures the privacy of the transaction, which can be important for donors who wish to keep their gifting intentions secret from their families or other heirs. Transfer of assets from an insurance contract is also absolutely incontestable, thus rendering anyone contesting the estate settlement powerless to stop it. Furthermore, the donor remains in a position to change the beneficiary prior to his or her death. If the donor chooses to stop paying the premiums, the charitable organization can choose to continue the process or can allow the policy to lapse.
By either gifting a life insurance policy outright or naming JFS Orlando as beneficiary, donors can provide JFS Orlando with a large sum of money that can provide a lasting legacy for a cause in which they believe.
For more information on the Life & Legacy program, or giving vehicles such as life insurance, please contact your financial or tax advisor, estate planner or Eric Geboff, Executive Director, JFS of Greater Orlando at 407-644-7593 ext. 238 or via e-mail at firstname.lastname@example.org.
Jewish Family Services of Greater Orlando, Inc. does not provide legal, tax, or financial advice. Always consult your own professional advisor before making any financial plans.