GIFTS THROUGH LIFE INSURANCE

LIFE INSURANCE offers a variety of opportunities for one to give to the Hastings Catholic Schools. It can be one of the simplest forms of giving while offering the donor an opportunity to make a sizable contribution without altering limited income or incurring a large amount of expense to do so.

A few things may need to be asked before considering life insurance gifting. What was the intent of the policy when it was purchased? Has it fulfilled the requirement? Can a portion of the policy now be designated to the church or school without detracting from its initial purpose?

The Hastings Catholic Schools can be named as the sole beneficiary or beneficiary in part with other beneficiaries.

A NEW LIFE POLICY can be purchased to provide a significant benefit to the Hastings Catholic Schools. The policy could be a term policy, calling for regular, but relatively small, premium payments. In the alternative, whole life insurance could be purchased. Payments on whole life insurance would be larger, but they could be established at a level whereby the policies built up cash values would keep the insurance in effect without need for additional premium payments.

AN EXISTING LIFE POLICY can also be transferred to the Hastings Catholic Schools. Oftentimes, people find that they might not need one or more insurance policies because their wealth has increased to the point that it will sustain their needs during retirement without the help of the life insurance. Rather than redeeming the insurance policy, or allowing it to lapse, consider gifting it, or even part of it to the Hastings Catholic Schools.

A gift of an existing life insurance policy having a cash value will result in an immediate deduction for the donor. Additionally, any premiums paid by you on a policy purchased for or gifted to the charity will be deductible.

Dividends on a policy owned by you could be given to the Hastings Catholic Schools and you would receive a deduction for the value of those dividends.

In the case of an uninsurable person, a spouse or another relative may be insured with the Hastings Catholic Schools as owner and beneficiary. Premiums on that policy would be deductible as well. As you can see, life insurance can be used as a tool in a variety of ways to fulfill charitable wishes to the benefit of our school system. Your desires can be administered in the manner that you so choose. Remember to compare your policies with your present needs in mind and you may find that a sizable gift can be readily designated with one, simple, painless gesture.

Life insurance agents are available to help you with these transactions. If you have questions, please do not hesitate to call or write.

EXAMPLE A:
Mrs. B. Hawking, 55, who is blessed with good health, had always hoped to make a meaningful contribution to the Hastings Catholic Schools and her Parish Church. However her children could use her help financially and her few assets are needed to generate income for herself These same assets will be needed by her children when she dies.

Mrs. Hawking elects to purchase a $50,000.00 life insurance policy with the Catholic Schools as beneficiary. Her monthly payments amount to $105.00, an amount that fits with her monthly income. This monthly payment becomes a deduction on her Federal Income Tax Return. The cash value and dividends will gradually grow until the day she dies. At the end of 15 years, Mrs. Hawking will have donated a total of $18,900.00 in monthly payments. But, were she to die at that point in time, the school and church would share in a death benefit of $65,000.00. The cash value grew to $24,000.00 and could be used if need be by the school. This $65,000.00 gift would be divided as she so stipulated between the parish and the school.

Her desire to help the institutions with a sizable contribution has certainly been satisfied. Her wish to leave her children the entire estate is complete. The $105.00 monthly premium was a deduction and did not prohibit her from those things that she had always wanted to do.

EXAMPLE B:
Mr. Creighton R. Lott. 61, has decided to review his will. It has been 15 years since he first sat down with his attorney and discussed what the consequences would be if an accident would happen to him or his wife. Though this has been in the back of his mind, he seems to constantly procrastinate and neglected to update and improve the existing document.

Things have certainly changed. The children are now on their own although learning life's struggles. The never-ending home loan has been all but completed though some remodeling may be in order His small management business has been paying off after years of hard work and long hours.

Mr. Lott has a desire to help the community in which he lives and the school that he and his children attended and his grandchildren will attend one day. After meeting with his attorney and accountant, Creighton decides the easiest and most uncomplicated thing for him to do is to gift a portion of his paid up$150,000.00 life insurance policy to those organizations.

By filing out a simple change in beneficiary form, these wishes can be accomplished. His estate will be decreased thereby avoiding any potential estate taxes on the gifted portion. This gifted amount also becomes an income tax deduction and his three boys will be the recipients of the remaining portion.

	HASTINGS CATHOLIC SCHOOLS  DEVELOPMENT OFFICE 111 North Burlington Avenue Hastings, NE 68901 402-462-6566 Tax Identification Number: 36-3336517