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Wealth Management

A Little Can Go a Long Way

  • Oppenheimer Life Agency, Ltd.
  • February 14, 2023

If you want to give back to your community or contribute to a cause you support, a Charitable Gift Life Insurance Policy is a simple way to leverage your meaningful intentions. This form of giving will afford the donor (you or a trust) the opportunity to make a donation to a non-profit organization without reducing the inheritance you intend to leave to your heirs. It allows you to give a gift that is much larger than one you may have otherwise been able to make. In addition, this type of donation does not become a matter of public record and is gifted without the delays of probate.

Three Options to Charitably Gift Life Insurance

Transfer of an existing life insurance policy to a charity
  • The charity will become the owner and beneficiary of the policy.
  • The donor will receive an income tax deduction equal to the value of the policy.
  • Offers an estate tax deduction for the proceeds collected by the charity upon death of the insured.
Purchase a new life insurance policy
  • The charity is the applicant, owner, and beneficiary of the policy.
  • The donor receives income tax deductions for all premium payments.
  • The death benefit proceeds will be excluded from the donor’s estate.
Maintain ownership of the policy and name the charity as the beneficiary
  • The donor retains the right to change the beneficiary at any time.
  • This type of ownership does not provide the donor with an income tax deduction.
  • Offers an estate tax deduction for the proceeds collected by the charity upon death of the insured.
man and son
Quotation from Aenean Pretium

Give a gift that will brighten someone’s tomorrow

DISCLOSURE

Source:
https://www.investopedia.com/terms/c/charitable-gift-life-insurance.asp
https://hmsia.com/sites/default/files/charitable_gift_of_life_insurance.pdf
https://www.endowdevelop.com/etech_pal/Content/other_gifts/charitable_gifts_of_life_insurance.htm

©2023 Oppenheimer & Co. Inc. Transacts Business on All Principal Exchanges and Member SIPC.

The information contained herein is general in nature, has been obtained from various sources believed to be reliable and is subject to changes in the Internal Revenue Code, as well as other areas of law. This material is for informational purposes only and should not be construed as a solicitation of any particular insurance product or insurance carrier. Insurance is sold through Oppenheimer Life Agency, Ltd. (OLA), an indirect wholly owned subsidiary of Oppenheimer Holdings. Before purchasing a policy of insurance, please review both the insurance carrier and the insurance policy carefully before investing. A strategic alliance exists between OLA and various outside providers whereby products and services may be utilized. Such providers may receive compensation as a result of the strategic alliance. However, the firms are completely independent of each other. This material is not a recommendation as defined in Regulation Best Interest adopted by the Securities and Exchange Commission. It is provided to you after you have received Form CRS, Regulation Best Interest disclosure and other materials. Oppenheimer & Co. Inc. Transacts Business on all Principal Exchanges and Member SIPC 5435594.1