A fully paid-up policy can be donated by naming the Foundation as the irrevocable owner and beneficiary of the policy. You are then entitled to an income tax deduction for an amount equivalent to the cash value of the policy. Life insurance is a useful vehicle for making a substantial gift for the future of FarmHouse without removing major assets from your portfolio. In addition to the tax benefits to the donor, the large cash values resulting from relatively small premiums allow many donors to make more substantial gifts through life insurance than they could on a current outright basis.
How it works
The FarmHouse Foundation must be named as both beneficiary and irrevocable owner of an insurance policy before it can be recorded as a gift.
The gift is valued at its interpolated terminal reserve value (or cash surrender value), upon receipts.
If you contribute future premium payments, the Foundation will include the increase in the cash surrender value as reported by the insurance company as a gift in the year the payment is made.
If you don’t elect to continue to make gifts to cover premium payments on the life insurance policy, the Foundation may continue to pay the premiums, convert the policy to paid up insurance or surrender the policy for its current cash value.
For more information about making a life insurance gift to the FarmHouse Foundation, please contact Allison Rickels, Executive Director, at (816) 891-9445 or Allison@FarmHouse.org.