Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Video Transcript: Hello everyone, I'm Steve Savant, syndicated financial columnist and host of the weekly online talk show Steve Savant's Money: The Name of The Game. I'm answering questions from insurancelibrary.com, and today's question is: is giving my life insurance policy to a charity a good idea?
Well, first of all, do you have a charity that qualifies as a non profit under the IRS rules? Second of all, is this a charity that you want to see go into perpetuity? Third of all, if your contract is existing and you really don't need it anymore, you don't need it for yourself, you don't need it for you beneficiaries, maybe your children or grandchildren, you could gift your policy to the charity. Some people will also write a policy on themselves from day one and have the charity own it. It really depends upon what you're trying to get done, but if you're trying to see your organization go into perpetuity and you no longer need an existing contract, this is a really good option for you to look at. A charity, you can gift your life insurance to the charity of your choice, and just make sure that it's IRS approved.
Well, that's our consumer question for the day. If you have any questions, just submit them to www.insurancelibrary.com.
The idea of giving life insurance proceeds to your favorite charity can be a noble idea. If there are no loved ones or business interest that would suffer a financial loss at your death, a charity can be a wonderful idea for these tax free proceeds. Be sure and seek advice from your attorney or speak to the charities accountant department to be sure you list the beneficiary properly on the policy to help them avoid unnecessary taxation of the charity. Congratulations on your noble idea.
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Video Transcript: Hello everyone, I'm Steve Savant, syndicated financial columnist and host of the weekly online talk show Steve Savant's Money: The Name of The Game. I'm answering questions from insurancelibrary.com, and today's question is: is giving my life insurance policy to a charity a good idea?
Well, first of all, do you have a charity that qualifies as a non profit under the IRS rules? Second of all, is this a charity that you want to see go into perpetuity? Third of all, if your contract is existing and you really don't need it anymore, you don't need it for yourself, you don't need it for you beneficiaries, maybe your children or grandchildren, you could gift your policy to the charity. Some people will also write a policy on themselves from day one and have the charity own it. It really depends upon what you're trying to get done, but if you're trying to see your organization go into perpetuity and you no longer need an existing contract, this is a really good option for you to look at. A charity, you can gift your life insurance to the charity of your choice, and just make sure that it's IRS approved.
Well, that's our consumer question for the day. If you have any questions, just submit them to www.insurancelibrary.com.