Life Annuities and Beneficiary Designations
Insurance policies (new or existing) may be given to charities in most states. Depending on the contract’s paid-up status, the charity may need to continue paying premiums. Donors may also name a charity as a beneficiary of an existing policy, either entirely or in part. Additionally, a charity may be named as a beneficiary of a retirement plan (e.g., IRA, 401k, profit-sharing, etc.) or annuity contract. The advantage of this strategy is that the charity usually receives the proceeds without the accompanying income tax liability.