Gifts of Life Insurance
By changing the beneficiary of your policy, you can make a gift to ministry. Or, transfer the ownership of the cash value life insurance policy. A gift of life insurance passes to the church without delay and without being subject to probate and administrative fees.Change the beneficiary.
Simply call your life insurance representative or the insurance company and ask for a change of beneficiary form. You name the ELCA ministry or ministries of your choice as a primary beneficiary. There is no cost to change beneficiaries and the process is simple. Since you retain ownership of your policy, there are no income tax benefits.Transfer ownership of your cash value insurance policy.
You may make a gift through a policy that is no longer fulfilling its original purpose (for example, a policy that was established when you were a child). Through an irrevocable transfer, the ELCA will hold the policy during your lifetime. At your death, the proceeds will be used for the ministries of your choice. You will receive a charitable income tax deduction for making the gift and, if there is not enough cash value in the policy, you would make gifts to the ELCA to support the policy. You would receive a charitable income tax deduction each time a gift is made to the ELCA. If there is enough cash value in the policy, there would not be a need for additional gifts.Establish a new charitable life insurance policy.
You may want to assure that a certain gift amount will ultimately be given to your favorite ministry or ministries. This can be accomplished by establishing a new life insurance policy in which you determine the gift amount. In this situation, the ELCA is made the owner of the policy from the beginning. The ELCA Foundation then holds the policy throughout your lifetime.
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Our nationwide network of professional gift planning staff
can help you explore a variety of possibilities for making a significant gift to ministry and fulfilling your legacy goals at the same time. The examples and information on this page are for illustrative and educational purposes only and should not be considered tax or legal advice. Please consult with your tax or legal advisor before proceeding with your estate plan.