The Gift of Life Insurance
When you first bought a life insurance policy, you probably hoped to
ensure the financial stability of your family should something happen
to you or your spouse. Have your circumstances changed since then?
Use of Beneficiary Clause as a Revocable Gift Arrangement
The easiest way to use life insurance for charitable giving is to simply name us
as the beneficiary of a policy. Such options are available if you would rather
retain ownership of a policy as an asset for your own financial security or that
of others. They include:
1. Naming Legal Services of North Florida as the only or a partial primary
beneficiary of the policy, while you keep the right to change the beneficiary
clause as owner of the policy;
2. Naming us as the contingent successor beneficiary, receiving the death
benefits only if a named individual beneficiary predeceases you;
3. Creating a separate trust named to receive death benefits, with trust
terms providing first for financial support of one or more named individuals for
specific terms of years or for life, after which the trust terminates and its
assets pass to us; and,
4. Naming LSNF as the residual beneficiary of an annuity settlement option
available under some policies.
There are no current tax benefits to this arrangement because
you are not giving away the policy ownership; however, it provides a very
generous gift with attractive tax benefits upon your death.
