In order to deduct premium payments as charitable deductions the donor must name the Messmer as both owner and beneficiary of the policy. A new policy or a fully paid-up policy can be contributed to Messmer. The donor of the policy may specify the use of the proceeds or leave them unrestricted. The donor is allowed an immediate federal income tax deduction for the lesser of either the policy's fair market value or the net premiums paid. When the policy is not paid up, the donor may take an income tax deduction for contributions to Messmer to offset Messmer's payment of subsequent premiums. Life insurance makes it easier for a donor to give a larger gift than he or she could have otherwise afforded. In some cases, whole life or universal life policies can be structured so policy premiums can be paid in a limited number of years, with policy dividends paying premiums for the remainder of the policy's life. Donors can make a gift of an existing life insurance policy, establish a new policy and name Messmer as the owner and beneficiary of the policy or use life insurance to replace the value of gifts to Messmer.
Click here for more options utilizing insurance policies in making a gift to Messmer.
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