Life Insurance

A common "hidden asset" for gifting is a life insurance policy that is no longer needed for its original purpose.

Example: Your family has grown and there is no longer a real necessity for retaining that $50,000 policy you purchased many years ago. The policy has a cash value of about $20,000. You can make South Dakota Mines the owner and beneficiary of the policy and continue to pay the premiums. By doing so, you have accomplished:

• An immediate tax savings of $5,600.
• Additional tax deductions for the premiums you pay in future years
• Giving South Dakota Mines CARA a future gift of $50,000

To make a life insurance gift, contact your insurance agent for forms that will change the beneficiary and ownership designations to the South Dakota Mines Center for Alumni Relations and Advancement.

Wealth Replacement

When used together with a life income gift, a wealth replacement trust may help you transfer your estate to your heirs without estate tax.

Donors who wish to replace contributed assets in their estates can purchase life insurance payable to family members, funded partly by tax savings from their charitable deductions.

The life insurance replaces the assets that we receive, and if you employ a so-called irrevocable life insurance trust, your family can receive the insurance proceeds free of gift or estate tax.

For more information on a gift of life insurance or wealth replacement, please contact Leah Mahoney, director of planned giving, South Dakota Mines CARA, 800.2117591.

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