LIFE INSURANCE

Life insurance can be a very flexible tool in estate-based philanthropy. As with other giving vehicles, you can help the National Academies while also receiving tax benefits for you and your heirs.

THE NATIONAL ACADEMIES AS BENEFICIARY
Among the easiest ways to use your life insurance to make a gift to the National Academies is to name the Academies as a beneficiary.

If your policy is paid up and you name the National Academies as owner and beneficiary, you are eligible for a charitable deduction equal to your cost basis or the replacement value of the policy, whichever is less.

If your policy is not paid up, you can still name the National Academies as owner and beneficiary. This would entitle you to a deduction of the cash surrender value of the policy. After the policy has been gifted to the National Academies, you can make yearly tax-deductible contributions to the Academies to cover any further premiums.

WEALTH REPLACEMENT
You can also use life insurance to replace the value of other assets that you are donating to the National Academies. For example, purchasing a life insurance policy for the value of a gift of real estate donated to the National Academies can help ensure the financial well-being of your heirs without subjecting them to the hassle of selling the property.

If you would like further information about using life insurance to make a gift to the National Academies, contact us at giving@nationalacademies.org or 202.334.2431.

This information reflects, in very general terms, how a gift might affect specified tax liabilities. This is not an effort to reflect your current tax picture or suggest that a particular gift will have the indicated result in your case; only your lawyer and accountant can do that. We suggest you consult your professionals before acting upon the concepts reflected here.