Life Insurance Policies:
Giving a life insurance policy is an inexpensive way to make a substantial contribution. Many people find in later years that they don’t need all the insurance they did when they were younger. If you own “unneeded” policies, you may name Blue Lake Fine Arts Camp as sole beneficiary and transfer ownership. Once you do that, you are immediately eligible for a charitable tax deduction on the computed current value of your paid-up policy. If you are still making annual premium payments, those payments will also qualify for a charitable deduction. (Those premiums are paid directly to Blue Lake Fine Arts Camp, which in turn pays the insurance company.) Keep in mind, too, that many of the newer insurance products require that premiums be paid for only a period of perhaps ten years, after which time the insurance will continue in force with no additional premium. Since the insurance policy is owned by Blue Lake Fine Arts Camp from the day it’s transferred, it is not part of your estate and is not subject to tax.