When you first obtain your
life insurance policies, you obviously felt a need for them.
Perhaps you do not need all that coverage today, yet you still
have those policies.
If you are thinking about
a contribution to the ACF Trust Fund, a gift
of your life insurance could be sensible, as well as generous,
course of action. If you make us owner of the policy, you will
normally receive an income tax deduction for this policy’s fair
market value or cost basis, if lower, on the date of the gift.
If you name us the
beneficiary of the policy (and retain ownership), you will
receive an estate tax deduction for the insurance proceeds.
You can also use life
insurance to replace the value of a different gift. For example,
you could donate stock to us because of the tax advantages and
purchase life insurance to benefit your heirs in the amount they
would have received had you left them the stock.