Gifts of Life Insurance - Gift-Replacement: FAQs

An irrevocable life insurance trust can be used to hold your policy and keep the policy proceeds out of your taxable estate. Talk with your estate planning professional about whether you should consider a life insurance trust to hold your policy and avoid paying estate tax on the proceeds. If the policy is not in the trust, the policy's proceeds will be included in your estate for estate tax purposes, and your children may receive less.

Typically, the income from your gift plan will cover more than the premium payments due, which means that you'll enjoy supplemental income from your gift annuity or charitable trust and provide gift replacement assets for your family. We can help you and your advisors work through the numbers to be sure you're comfortable with the amount you'll "net" from your gift plan.