Life Insurance as a Community-Building Gift Vehicle

Over the years, the Columbus Jewish Foundation has received from its donors life insurance gifts with a future value of roughly $30 million.  How does the deduction work on such contributions?  You may be surprised to learn that you cannot necessarily deduct the policy’s face value or cash surrender value. Rather, the deduction is limited to the policy’s fair market value or your cost basis, whichever is less. Unlike days gone by, determining a policy’s fair market value now is more complex, requiring consideration of factors such as the policy’s cash surrender value, the cost of purchasing a comparable policy, and the insurer’s actuarially calculated reserves. Life insurance still is a wonderful, economical, and favored way to make significant endowment gifts. Call us for more details at 614-338-2365.

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