Gifts of Life Insurance - New Policy: The Details
Donate a policy, take a deduction, deduct future premium payments, if any, and make an extraordinary gift. You’ll also receive the proceeds from your taxable estate.
Is this gift right for you?
A gift of life insurance may be for you if…
Your financial projections may indicate that you won't accumulate large blocks of capital during your lifetime, or that your family will have first call on your estate. You want to make a significant gift to the , but you wonder if you'll find the resources to do so.
Life insurance uses manageable payments made from income — the premiums — to create a large future gift for . You can build our long-term financial strength without diminishing your own.
Make the gift by taking out a new policy on your life, naming the irrevocable owner as well as beneficiary (this arrangement makes the gift complete in the eyes of the IRS.) We will receive the premium notices, and you will make annual donations to offset our payments. These gifts will, of course, be tax-deductible. There is no deduction for setting up the policy itself.
Besides creating a new life insurance policy, you can also donate an existing policy. This gift will generate an initial tax deduction: the lesser of the policy's fair market value — we can guide you in determining this — or the total of your net premium payments. If premiums are still payable, we will ask you to make tax-deductible contributions offsetting our payment of those premiums. We do reserve the right to keep such a policy in force during your lifetime, or to terminate it sooner for its cash-surrender value.
The professionals at our Department of National Planned Giving, Legacy and Endowments will be happy to discuss your interests, concerns and financial options, and work personally with you and/or your legal and financial advisors to create a plan that meets your needs and supports the Anti-Defamation League Foundation.
For more information, please contact:
Director of National Planned Giving, Legacy and Endowments
Anti-Defamation League Foundation (ADLF)
605 Third Avenue
New York, NY 10158
This information is provided for educational purposes. The Anti-Defamation League Foundation and ADL are not financial, legal or tax advisors. Please contact your advisors regarding your financial, legal or tax needs.