News

Life insurance gifts

Apr 08, 2014

One of the exciting aspects of planned giving options is the ability for donors to make a gift in excess of what they thought themselves capable of while receiving significant tax benefits. In other words, making a bigger impact for less!

Many people have an old life insurance policy from earlier in life that is no longer a significant piece of their estate plans. Did you know that you can donate this policy and receive a tax benefit during your life? You’ll also make a tremendous impact for the children of the world!

It’s as simple as contacting the life insurance company and assigning ownership of the policy to the Kiwanis International Foundation. This is an important step, as simply assigning the Kiwanis International Foundation as the beneficiary of the policy is appreciated, but will not provide the same tax benefits to a donor.

If your policy still collects premiums, it may be necessary to make annual donations to the Kiwanis International Foundation to cover the cost of the premium. However, these annual gifts still qualify as charitable donations.

We encourage you to talk with your tax adviser or a certified estate planner about whether this gift may make sense for you.

This is a great way to become a member of the Mary and Bo Shafer Legacy Society, which honors planned gifts greater than US$50,000. For more information on life insurance donations or planned giving, please contact Steve Hinson, manager of major and planned giving, at shinson@kiwanis.org or 317-270-4339.