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Life Insurance Gifts
A gift of life insurance can provide crucial financial support to the Academy Center of the Arts. This option may be particularly attractive if your other assets have grown or your dependents’ needs have decreased, reducing the importance of your life insurance policy to you personally.
Ways to Give Life Insurance:
- Designate the Academy as a Beneficiary
- Name the Academy Center of the Arts as a beneficiary of an existing policy
- Your estate may receive an estate tax deduction for proceeds paid to the Academy
- Give an Existing Policy
- Make the Academy the owner and irrevocable beneficiary of your policy
- Receive a federal income tax deduction for your gift
- Deduction amount varies based on policy status:
- Paid-up policy: Deduction equals replacement value
- Outstanding premiums: Deduction approximately equals cash surrender value
- New policy purchases gifted to the Academy: Deduction is for premium payments made
- Irrevocable gifts may remove the policy’s value from your estate, potentially reducing estate taxes
Retirement Plan Gifts
Naming the Academy Center of the Arts as a beneficiary of your qualified retirement plan can be an effective way to support our mission while potentially providing tax benefits to your estate.
Eligible Plans:
- Profit-sharing plans
- 401(k) plans
- IRAs
- Other qualified retirement plans
Benefits of Gifting Retirement Plan Assets:
- Tax Efficiency: Transferring retirement plan assets to non-spouse individuals may trigger both estate and income taxes, potentially consuming up to 70% of the assets.
- Estate Planning Strategy: Consider leaving other assets (cash, stock, real estate) to family members while gifting retirement plan assets to the Academy. This approach can provide a significant gift to the Academy at minimal cost to your heirs.
How to Make a Retirement Plan Gift:
- Contact your plan administrator for the appropriate beneficiary designation form
- Name the Academy Center of the Arts as a full or partial beneficiary of your plan
- Inform us of your plans so we can ensure proper processing and acknowledgment
Important Considerations:
- Always consult with your financial advisor, tax professional, or estate planning attorney to understand how these gifts may impact your specific financial and estate planning situation.
- Gifts of retirement plan assets can be combined with other planned giving methods for maximum impact and potential tax benefits.
We’re here to help! If you have any questions about your giving options, please contact our development office at membership@academycenter.org.