Life Insurance

Many people are holding onto life insurance policies that they no longer need. This can be a wonderful tool to use for a charitable gift.

The easiest way to accomplish this is by simply changing the death benefit beneficiary to a charity like Concerned Women for America, or designating CWA to receive the dividends paid.

You can also transfer ownership of a paid-up policy to the charity, which may make you eligible for a substantial tax deduction.

Additionally, life insurance can be combined with other vehicles in your estate plans to help you accomplish your overall objectives. One common example is called a Wealth Replacement Trust. This involves setting up a charitable remainder trust (CRT), then using a portion of the CRT payments to pay the premiums on a life insurance policy. The life insurance policy, which is usually held in a separate trust, designates your heirs as the beneficiaries (thus "replacing" a portion or all of the amount that will eventually be given to charity through the CRT).

 

As always, be sure to consult your professional advisor regarding how such plans will affect your personal tax and financial situation. This information is provided as a service by CWA, and is, by necessity, general in nature.
For more information contact our Planned Giving Office at (800) 458-8797.
Concerned Women for America
1015 Fifteenth St. N.W., Suite 1100
Washington, D.C. 20005
Phone: (202) 488-7000
Fax: (202) 488-0806
E-mail: mail@cwfa.org