Planned Giving Guide

This step-by-step process will help you decide what type of gift to make to the Northland Public Library Foundation.

Question 1

Which type of charitable gift would you prefer?

I would prefer to make a charitable gift as part of my estate.

Question 2

In which of the following ways would you like to make your gift through your estate:

Through my life insurance

Your Result

Donating your Life Insurance

When you first bought a life insurance policy, you probably hoped to ensure the financial stability of your family should something happen to you or your spouse. Have your circumstances changed since then?

Donors can make charitable gifts of life insurance policies in several ways:

You can name Northland Public Library Foundation as the primary or partial primary beneficiary. This may be a good option for those whose beneficiaries have preceded them in death, or whose beneficiaries are covered by other life insurance policies or assets. (The proceeds from group insurance as well as individually owned insurance can be given to the Foundation.) You keep the right to change the beneficiary clause as owner of the policy. Donors receive an estate tax deduction their lifetimes, as the gift is revocable.
You can name Northland Public Library Foundation as the contingent successor beneficiary, eligible to receive the death benefits only if a named individual beneficiary predeceases you.
You can donate a policy that has been paid up. In this case, you would name Northland Public Library as a beneficiary. This choice also transfers an immediate income tax deduction, reportable each year up to 50 percent of adjusted gross income; excess may be carried forward for up to five additional years.
You could donate a new policy or a partially paid policy. You would receive a deduction about equal to the policy’s current cash value, and also receive deductions for continued premium payments. This makes a new policy a particularly economical way to make a significant future gift to Northland Public Library Foundation.
You could create a separate trust named to receive death benefits, with the terms of the trust providing first for financial support of one or more named individuals for specific terms of years or for life, after which the trust terminates and its assets pass to Northland Public Library Foundation.

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The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.