Life Insurance is one of the most overlooked giving opportunities available. It may be used to provide a "Future gift" to Tri-State. Transferring the ownership of an existing life insurance policy or establishing a new policy with Tri-State as owner and beneficiary.

Life insurance can actually be the funding mechanism of a gift, this allows the donor to potentially make a large gift with a modest outlay of cash. There are two distinct ways to use life insurance where Tri-State is the beneficiary or the owner of the policy. Each option has a different benefit to the donor.

TRI-STATE AS BENEFICIARY

A donor can name Tri-State as the primary benefactor to a life insurance policy. The ownership of the policy is retained by the donor thus allowing access to the cash value. The value of the policy is included in the total value of the estate but the federal estate tax liability doesn't exist on the value of the policy because of the donation to Tri-State. The donor will not receive an income tax deduction for the value of the policy or the future premium payments because of retaining ownership of the policy.

TRI-STATE AS OWNER

Some donors would like to see an immediate tax benefit and this can occur by irrevocably assigning the policy to Tri-State. When this method is used a federal income tax benefit can be realized from the lesser of either the fair market value of the policy or the net premiums paid. Income tax deductions would also be allowed for contributions to Tri-State so future premium payments can be made.