Consider a charitable gift of life insurance

As children in the family grow up and other conditions in a couple's life change, so do their financial needs. For many, additional financial security has been established over the years ... there is a plan in place for the future.

Today, many people are finding themselves with more life insurance than they actually need. If you find yourself in that category, consider making a significant gift to Right to Life of Michigan through a charitable gift of life insurance.

Life insurance can be used to make a charitable gift in several different ways:

• Beneficiary Designation
On an existing or new policy, you may designate the Right to Life of Michigan Educational Fund or the Right to Life of Michigan Educational Endowment Fund as the insurance beneficiary. Your estate will receive a charitable estate tax deduction for the amount of the death benefits paid by the insurance policy to the RLM Educational Fund or the RLM Educational Endowment Fund.

• Transfer of Ownership
If you assign ownership of your life insurance policy to the RLM Educational Fund or the RLM Educational Endowment Fund you will receive a current year income tax charitable deduction. The deduction will normally be approximately the cash surrender value of the policy.

If the policy is kept current, you may continue to pay the premiums (through or on behalf of the RLM Educational Fund or the RLM Educational Endowment Fund) and receive an income tax deduction for the amount of the premium.

• Asset replacement/life insurance trust
Donors sometimes make outright gifts or fund charitable remainder trusts with assets from their estates, and then make provisions to replace those assets with life insurance. The tax savings and income generated from these gifts will often pay the premiums on the insurance policy designed to replace the assets. This structure can be very attractive to some benefactors. In essence, it allows you to "give away–twice" the assets of your estate.

For more information about this giving option, contact Kathy Crombie at (248) 553-8800 or send an e-mail to kbcrombie@rtl.org.