A gift of a new or existing life insurance policy is a wonderful way to make a sizable contribution that not only provides immediate tax savings and helps ensure the future of the National Gallery of Art, but also allows the donor to avoid tying up current assets. By naming the Gallery the owner and beneficiary of a life insurance policy, the cash value of the policy becomes tax deductible to the donor. Designating a charity as a policy beneficiary may also remove the policy from the donor’s taxable estate.
The Gallery would expect the donor to make provisions for the payment of any future premiums, which would provide additional tax deductions for the donor.
Alternatively, one can name the Gallery as a contingent beneficiary on a life insurance policy. Should the primary beneficiary die before the insured, the Gallery becomes the primary beneficiary.
We invite you to contact us with questions or comments about planned giving; we would welcome the opportunity to discuss these options further with you. We highly recommend that you also speak to a financial adviser.