Major Gifts > Life Insurance and Lead Trust
Life Insurance and Lead Trust
When you first bought your insurance policies, you obviously felt a need for them. But perhaps you don’t need all that life insurance coverage today. Yet, you still have those policies.
An Easier Way to Give
If you’re thinking about a contribution to the Bogart Pediatric Cancer Research Program, a gift of your existing or new life insurance policy could be a sensible as well as generous course of action:
- You save taxes this year through an income tax charitable deduction when you name us the beneficiary and assign us ownership.
- You increase spendable income when you no longer have to pay policy premiums.
- You can reduce estate taxes because the proceeds are completely removed from your taxable estate so long as you do not retain any incidents of ownership.
- You can also use life insurance as a replacement for the value of a gift you make to us.
Are you concerned about the possibility of the government taking a huge part of the assets you were planning to leave to your heirs?
There’s a way to pass assets to your family with significant estate tax savings while at the same time making a gift to the Bogart Pediatric Cancer Research Program.
It’s called a charitable lead trust.
Give Without Forfeiting Assets
This trust pays out income to Bogart either for a number of years you specify or for the life of one or more of the individuals you name. The income can be the same amount each year or a percentage of the trust value. When the term is up, the principal goes to your family, with estate or gift taxes reduced or eliminated.
A Lead Trust in Your Will
Instead of funding a lifetime lead trust, you can also create one in your will—a testamentary lead trust. The major difference is that we begin to receive income only after your death.
Either type of lead trust offers you a good way to carry our your philanthropic plans over the coming years and save on taxes.
Would You Rather Keep It?
We realize that if you still need your life insurance for your future financial security or that of someone in your family, those concerns come first. Here are ways you can safeguard personal requirements and still remember Bogart.
- Name Bogart as the contingent beneficiary, and then we receive the proceeds should your primary beneficiary predecease you.
- Name us as beneficiary, but keep ownership, and retain control of your policies.
- Create a trust to receive the policy proceeds.
These plans will not entitle you to an income tax deduction, but they will satisfy your natural desire to use the policies for personal and family responsibilities as long as required and to support our work later.