Assigning a life insurance policy to charity

If a person assigns a $50,000 life insurance policy to a charity, is the value of the policy a charitable deduction in the year of assignment? What about the annual premiums?

Reply to
wjsafe
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If by "assigns" you mean transfer ownership and if memory serves, my answer is that the current gift is the cash value at the time of the gift plus future premiums in the future as you pay them.

But get someone to check this.

Reply to
HW "Skip" Weldon

Almost right. If the taxpayer transfers ownership to the charity and names the charity as the beneficiary, the charitable deduction in the year of the gift is the "lesser of" the value of the policy or the donor's basis. If the taxpayer continues to make the premium payments, the amount paid in any year is also a charitable deduction. If this is done and more than 3 years elapse before the date of death, the policy is excluded from the decedent's estate.

Reply to
Alan

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