GIFT PLANNING
Leveraging support with gifts
of insurance
Life insurance can be an excellent tool for charitable giving because
it allows you to make a substantial gift to Baylor Health Care System
Foundation at relatively little cost and may also result in a tax benefit.
Strategic giving with insurance. David
Shuttee was overwhelmed with the care his
wife, Karen, received from Baylor when
she had cancer. Inspired by gratitude,
David and Karen wanted to make a significant gift to Baylor Charles A. Sammons
Cancer Center at Dallas. David remembered he had several paid-up policies he
didn’t need. His advisor told him using
these policies would be a “painless way” to
make a significant gift.
David agreed the gift could not have
been easier. His insurance company sent
forms he needed to name the Foundation
as beneficiary and to transfer ownership of
several policies to the Foundation. The
combined policy face values were $267,160.
Because David transferred ownership of
the policies, he was entitled to an income
tax deduction of $147,160 – the policies’
cash surrender values. Upon maturity, the
insurance proceeds will benefit oncology
research.
Leveraging cash to create a $1 million
insurance gift. Margaret Vonder Hoya is
grateful her husband, Chris, has a new
lease on life. After a successful liver transplant in 2009, Chris has been cancer-free
for five years. Margaret wanted to leave a
legacy for Baylor Annette C. and Harold
C. Simmons Transplant Institute, so she
worked with her advisors to leverage current gifts for future impact.
Margaret purchased a new life insurance policy with a face value of $1 million,
to be paid up in five annual installments,
totaling $300,000. Each year, Margaret
makes a gift to the Foundation of $60,000
and receives a charitable deduction for her
gift. The Foundation, as owner of the
insurance policy, uses Margaret’s donations to make the annual premium payments. After five years, the insuranc H