Life Insurance & Retirement Assets

What's the Need?

• You have a paid-up life insurance policy where no one needs the proceeds.
• You want to make gifts to your family and the Foundation and avoid taxing your heirs and estate. Note: If you give your retirement plan assets to your children 60-65% may be taxed.
• You want to provide a large gift that would benefit the Foundation but also make sure that your heirs benefit as well.

What's the Solution?

• You can designate the Foundation as the beneficiary of your life insurance policy or high-tax retirement plan assets. With this, you could give your heirs your low-tax assets that step up in basis at death.

The Benefits

• Tax Savings
  - Your family avoids additional income tax.
  - If you have a taxable estate, it could enjoy estate tax savings.
  - For Life Insurance Policy, proceeds distributed to the Foundation are exempt from estate tax. This would benefit your heirs as well.
• Preserves Lifetime Use
  - You may continue to take withdrawals from your retirement accounts during your lifetime.