Bequest of Insurance

Marla and Wayne purchased a life insurance policy many years ago to create security for their children's future. As the children grew up, married, found good jobs and accumulated significant assets, the insurance didn't appear to be needed for its original purpose.

Marla: We volunteered regularly and wanted to know if there was any benefit to giving our policy to the community foundation.

Wayne: I wasn't ready to part with the insurance quite yet. I wanted to preserve the option of giving it to our family if someone needed extra help down the road. We both wondered if there was a way we could commit now to give it to establish a charitable fund at Akron Community Foundation but make our gift at a later date when it was clear the policy wouldn't be used.

Their lawyer told them about a way in which they could commit to make a bequest of insurance today that would help achieve their personal and charitable goals. The bequest could be made by simply naming the community foundation a beneficiary of their policy. With the beneficiary designation unchanged during their lifetime, the insurance proceeds would go to the community foundation and be used to establish a fund in the couple's name to benefit their favorite charities forever. In addition, their estate could benefit from an estate tax charitable deduction based on the value of the proceeds paid.

Marla: The insurance bequest made sense to us. It would achieve our goals and we liked the idea.

Wayne: I also liked the fact that our estate would benefit from tax savings, which would help to preserve other assets intended for our family.

Is this gift option right for you? Call your advisor or contact us.

*Please note: The name and image above is representative of a typical fundholder and may or may not be an actual donor to our organization. Since your benefits may be different, you may want to click here to view an example of your benefits.