Life Insurance to Replace Gift

An important but frequently overlooked role of life insurance is the one it can play in charitable gift planning. Life insurance itself can be the direct funding medium for a gift, permitting the donor to make a substantial gift (face value of policy) for a relatively modest annual outlay (i.e., the premium payment). Life insurance can also be used to replace an asset that has been given to McDonogh.

How It Works
After a donor makes a gift to McDonogh, the tax savings produced by the charitable deduction are used by his or her children or an irrevocable trust to purchase and pay the premiums on an insurance policy on the donor's life. Such an arrangement can ensure that the interests of family beneficiaries will not be adversely affected.

More Information

Contact Us

Beth Sauer Hopkins '02
Director of Planned Giving
bhopkins@mcdonogh.org
443.544.7057

 

McDonogh School
Office of Philanthropy
8600 McDonogh Road
Owings Mills, MD 21117
Federal Tax ID Number: 52-6001577

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