Ways to Help > Donations > Gifting Life Insurance

How to Give Like a Rich Person Without Being Rich!

Many of us share the dream of helping Texas Hearing & Service Dogs because we feel so strongly about the good THSD does. We would love to do something significant that would help the people and the dogs, but feel that only the rich can afford to make a sizable donation. Through the gifting of life insurance, an individual of moderate means can make a significant donation.

Life insurance can help you make a larger gift to THSD than you might have thought possible, while also increasing your total benefit to your loved ones and generating substantial tax advantages. In addition to making a heartfelt contribution to a worthwhile cause, gifting life insurance offers many practical advantages to you, the donor: tax deductions, nominal cost of the transaction and simplicity. There are many methods for using life insurance to make a huge difference to THSD; below are the most common:

·        Designate Texas Hearing & Service Dogs as Owner and Beneficiary  This method benefits THSD and gives you, the donor a bonus in the form of income tax benefits. Premiums on such a policy are deductible to taxpayers who itemize their deductions. Consult a tax professional for details.

·        Designate Texas Hearing & Service Dogs as Beneficiary  As policy owner, you retain the right to make changes to the policy including changing the beneficiary. Premium payments with this arrangement are not tax deductible. However, when the donor dies, the estate receives a charitable estate tax deduction for the proceeds, as allowed by law.

·        Donate an Existing Policy  If you own a policy whose coverage is no longer essential, you may choose to donate it to Texas Hearing & Service Dogs. The donor could irrevocably assign or transfer the policy to Texas Hearing & Service Dogs as owner and beneficiary. This type of gift is generally not subject to gift tax, and in most cases may be eligible for a charitable income tax deduction.

·        Set Up a Charitable Remainder Trust  This is a possible solution to disposing of unproductive appreciated assets, such as real estate that is unencumbered. If the owner keeps the asset, it may yield little or no income; if sold, it may incur capital gain taxes. A charitable remainder trust is a planning tool that can benefit the donor, the heirs, and the charity. It is a complex transaction that should be undertaken with the advice of an attorney or an accountant familiar with such arrangements.

The generosity of private citizens is more important to us than ever. It's true that just one person can make a difference. With the gifting of life insurance, you can now help make a significant difference. Your support helps continue our good works. Charitable giving also enriches donors' lives, providing the profound sense of satisfaction, of "doing the right thing." For more ideas on how life insurance may fit into your charitable giving plan, please contact your financial or tax advisor. (email to sheri@servicedogs.org)