Make Summit the Beneficiary of Your Life Insurance Policy
If you have a life insurance policy and you no longer need to support your spouse or family, you can name Summit as the beneficiary of the policy, meaning that Summit will receive the policy’s death benefit when you die. While there are no current tax benefits to this approach, the value of the policy will be removed from your estate for federal estate tax purposes.
Make Summit the owner and beneficiary of an existing policy
Instead of simply naming Summit as beneficiary of an existing life insurance policy, you transfer full ownership of the policy to Summit. The school receives the policy’s death benefit when you die. In addition to removing the value of the policy from your estate for federal estate tax purposes, this approach also provides you with current federal income-tax deductions.
Help Summit purchase a new life insurance policy on your life
If you wish to make a substantial future gift to Summit at a relatively low cost to you, another alternative is to consider purchasing a new life insurance policy and naming Summit as the policy owner and beneficiary. You then arrange to pay the premiums through gifts to Summit. This approach provides federal income tax deductions and the policy proceeds are not included in your estate for federal estate tax purposes.
Please note: The Summit Country Day School is not in the business of offering legal or tax advice. It is strongly recommended that you speak with your own financial/legal advisor prior to making a planned gift.