Whether you own an existing life insurance policy or wish to purchase one to fund your charitable giving, there are several ways to use life insurance as a vehicle for your generosity.
Designate the Asian Art Museum as a beneficiaryIf you own a current policy, you may wish to make the museum the beneficiary (or a contingent beneficiary). This allows you to make a sizable future gift.
You retain ownership of the policy, while its proceeds are treated as part of your estate.
Make a gift of your policyAlternatively, you may wish to transfer ownership of a policy directly to the museum. This may result in certain tax advantages, as you are in essence donating the policy (not just the proceeds).
Other alternativesDepending on your financial circumstances and needs, other options may offer attractive alternatives. These include purchasing life insurance to replace amounts donated to charity, or setting up an Irrevocable Life Insurance Trust.
The laws concerning life insurance, trusts, and charitable giving can be complicated. As with all matters concerning estate planning, please consult your estate and tax specialists.