Gifts of Life Insurance - Gift-Replacement: The Details
Is this gift right for you?
A Gift-Replacement Life Insurance may be for you if…
You're impressed by the benefits of a life-income gift: a donation that significantly helps , while also paying income back to you and saves on income and capital gains taxes.
The problem? Taking an asset out of your portfolio to fund a life-income gift could jeopardize the financial benefit your children or heirs are counting on from your estate. A life-income gift will help you, but what will its effects be on them?
There is a solution. Use the income you will receive from your life-income gift which will, in many cases, surpass the yield on the assets you donated and tax savings from the charitable deduction, to pay the premiums on a gift-replacement life insurance policy benefiting your heirs. Set the death benefit of the policy at an amount equal to the value of the assets you contributed to (or a larger sum reflecting how those assets would have grown in value).
At your death, will receive the remaining balance in your life-income gift. Your heirs will receive the proceeds of the life insurance policy. The result? You've done what you thought you couldn't do – make a substantial gift to and also fully provide for your heirs in your estate.
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.