Gifts of Life Insurance - Gift-Replacement
How It Works
- You create a gift plan like a Charitable Gift Annuity or a Unitrust that will pay you income for your lifetime.
- You also create a life insurance policy, naming your children or other heirs as beneficiaries. The amount of the death benefit replaces the contribution you made to create your life-income gift.
- You pay the premiums for the policy from the income you are receiving from your life-income gift.
- At your death, the Taft School receives the remaining balance of your gift plan, and your heirs receive cash in the amount of your original gift.
- You make a significant gift to the Taft School with no negative effect on your family's financial security.
- After your gift, your estate is replenished for the benefit of your heirs.
- No new assets are required to pay for this replacement: tax-savings from the charitable deduction plus income you receive from your new gift plan pay the premiums.
- Donors with large families or children who will need long-term assistance can consider helping the Taft School at a level they never thought possible.
- One asset can do the work of two: make a gift to the Taft School and provide an equal benefit to your heirs.
- More detail on gifts of life insurance - gift-replacement.
- Fequently asked questions on gifts of life insurance - gift-replacement
- Contact us so we can assist you through every step.