Life Insurance
Want to support the JC Raulston Arboretum? Here is another idea that might be just the thing!
Many times a donor will tell us that they would like to make a larger gift in support of the JC Raulston Arboretum than they feel capable of making. They are interested to learn that they can use life insurance to accomplish that objective. As people get older, they generally find their need for life insurance is less. Their mortgage is paid, the children are grown, and retirement income is providing financial stability. Cashing in a paid up policy could have income tax ramifications -- so they hesitate to do that. Using that policy to make a charitable gift to the JCRA can provide some attractive tax benefits and may allow them to make that larger gift they would like to make.
When the JC Raulston Arboretum is made both the owner and the beneficiary of a life insurance policy, the donor will receive an immediate income tax deduction and the policy value will be removed from their estate. (When JCRA is only named as the beneficiary of the policy, it will not be taxed in the estate, but there is no up-front income tax deduction.)
The following are several different ways to make a gift of life insurance depending on the type of policy that is used to make the gift.
Paid-up Policy:
If Mr. Daffodil has a paid up life insurance policy, he can designate the JC Raulston Arboretum as the owner and beneficiary of the policy. In return, Mr. Daffodil will receive an income tax deduction equal to the replacement value of the policy. If that amount exceeds what Mr. Daffodil's investment has been in his policy he will be limited to his investment as the charitable deduction.
A Policy with Premiums Remaining to be Paid:
Perhaps you are like "Ms. Daisy Flower" and have a policy on which you are continuing to make payments. Ms. Flower designated the JCRA as the owner and beneficiary of her policies. As a result, she not only removed the value of those policies from her estate, but she also received an attractive charitable income tax deduction. On a policy with premiums remaining, the deduction is based on the interpolated terminal reserve value of the policy (an amount that is slightly in excess of the cash surrender value). She will continue to make the premium payments on the policies, but instead of paying the company she will pay the JCRA, thus receiving a charitable deduction for those gifts. Most importantly, her gift has a significant impact on the continued support of important research and programs at the JCRA!
A New Policy:
Another alternative for support would be to create a new policy. The JC Raulston Arboretum would be both the owner and beneficiary of the policy. "Mr. Camellia" would pay the premiums directly to the JCRA, and would receive an income tax deduction for each payment. This could be a wonderful way to provide or even supplement an endowment set up to benefit the JCRA.
Now....
If using life insurance as a way to support the JCRA appeals to you, and you are interested in learning more, please call Anne Porter, at (919) 513-3463 or Joan DeBruin, at (919) 515-9076. We will be happy to discuss ways in which a gift of life insurance can be structured so that it meets your needs and circumstances and helps you support the many fine programs and research of the JC Raulston Arboretum.
Thanks for your interest and support! Anne Porter