Using a life insurance policy in your planned giving is a perfect way to make a leveraged gift to Open Hand. By making small payments each year into your policy for a number of years, you can leave a bequest of sizable proportions to Open Hand. Upon the death of the insured, the policy proceeds going to Open Hand will be an estate tax charitable deduction.
There are two ways to ways to give a gift of a life insurance policy:
- Gift of existing policy – Open Hand becomes the owner and beneficiary. You get an immediate charitable income tax deduction for the lesser of current cash value or premiums paid. Any future premiums you pay are deductible as contributions.
- Name Open Hand as a beneficiary of a new or existing policy – You keep control of the policy while naming Open Hand as a full or partial beneficiary. For this gift you are entitled to a charitable deduction for the value of the initial premium and you will receive additional deductions when you make later premium payments.
For more information on planned giving options, or to set up an appointment to explore how a charitable gift to Open Hand may fit into your overall estate planning, please contact Anika Madden, Donor Relations Manager, at 404-419-1109.