Kappa Alpha Order - Educational Foundation

When you first bought a life insurance policy, you probably hoped to ensure the financial stability of your family should something happen to you or your spouse. Have your circumstances changed since then?

Use of Beneficiary Clause as a Revocable Gift Arrangement
The easiest way to use life insurance for charitable giving is to simply name us as the beneficiary of a policy. Such options are available if you would rather retain ownership of a policy as an asset for your own financial security or that of others. They include:

naming Kappa Alpha Order Educational Foundation as the only beneficiary or as a partial primary beneficiary of the policy, while you keep the right to change the beneficiary clause as owner of the policy;
naming us as the contingent successor beneficiary, receiving the death benefits only if a named individual beneficiary predeceases you;
creating a separate trust named to receive death benefits, with trust terms providing first for financial support of one or more named individuals for specific terms of years or for life, after which the trust terminates and its assets pass to us;
naming KAOEF as the residual beneficiary of an annuity settlement option available under some policies.

There are no current tax benefits to this arrangement because you are not giving away the policy ownership; however, it provides a very generous gift with attractive tax benefits upon your death.

Please call Erik Showalter at 540-460-1401 or 540-463-1865, or e-mail us at eshowalter@ka-order.org, for more information.

Click the icon to request a FREE guide to making gifts of life insurance.


Copyright © The Stelter Company, All rights reserved.

The information in this Web site is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income tax include federal taxes only. Individual state taxes and/or state law may impact your results.

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