the torch Winter 2014, Issue 4 | Page 22

GIFT PLANNING Leveraging support with gifts of insurance Life insurance can be an excellent tool for charitable giving because it allows you to make a substantial gift to Baylor Health Care System Foundation at relatively little cost and may also result in a tax benefit. Strategic giving with insurance. David Shuttee was overwhelmed with the care his wife, Karen, received from Baylor when she had cancer. Inspired by gratitude, David and Karen wanted to make a significant gift to Baylor Charles A. Sammons Cancer Center at Dallas. David remembered he had several paid-up policies he didn’t need. His advisor told him using these policies would be a “painless way” to make a significant gift. David agreed the gift could not have been easier. His insurance company sent forms he needed to name the Foundation as beneficiary and to transfer ownership of several policies to the Foundation. The combined policy face values were $267,160. Because David transferred ownership of the policies, he was entitled to an income tax deduction of $147,160 – the policies’ cash surrender values. Upon maturity, the insurance proceeds will benefit oncology research. Leveraging cash to create a $1 million insurance gift. Margaret Vonder Hoya is grateful her husband, Chris, has a new lease on life. After a successful liver transplant in 2009, Chris has been cancer-free for five years. Margaret wanted to leave a legacy for Baylor Annette C. and Harold C. Simmons Transplant Institute, so she worked with her advisors to leverage current gifts for future impact. Margaret purchased a new life insurance policy with a face value of $1 million, to be paid up in five annual installments, totaling $300,000. Each year, Margaret makes a gift to the Foundation of $60,000 and receives a charitable deduction for her gift. The Foundation, as owner of the insurance policy, uses Margaret’s donations to make the annual premium payments. After five years, the insuranc H