McLeod Health - Planned Giving

There are several ways you can use life insurance as the basis for a charitable gift.

Making the Charity a Beneficiary of your Life Insurance Policy
You may wish to make the charity the beneficiary (or a contingent beneficiary) of a life insurance policy as a way to make a sizeable future gift. You retain lifetime ownership of the policy, keeping the right to cash it in, borrow against it, and change the beneficiary. A gift of this nature is treated much like a bequest made through your will. Because you retain the ownership of your asset (the policy), you will not receive an income tax charitable deduction for this future gift or for your premium payments during your lifetime. The policy's proceeds will be included in your gross estate, and your estate can take an estate tax charitable deduction.

Generous Gift Comes as a Result of Good Planning

For Gene Hall, the secret to a happy life is in giving back. “Everything we have in life is given to us,” Gene says. “It’s our responsibility, if we’re successful, to give back because our success is often the result of the generosity of others.”

Gene’s values were instilled at an early age. His father, a tenant farmer in eastern North Carolina, was the perfect role model. “Although my father was very, very poor, if you asked him for a dime and he only had a nickel in his pocket, he would give it to you,” Gene explained.

"I hope that because of this [gift] more and more children will lead healthy lives."

As Gene went on to obtain his college education at UNC Pembroke, his motivation to give to society grew. He first got involved with his alma mater. As his finances increased, so did his support of community organizations, many of which helped children--a passion he and his father shared.

Gene first learned of McLeod Children’s Hospital when his realtor made a donation in his name to the Children’s Miracle Network. Through the years, his knowledge of and relationship with the hospital grew.

As Gene considered making a more substantial gift, his longtime career in the insurance industry with Lincoln Financial Group in Lumberton, N.C., helped him to make a decision. He decided to purchase a life insurance policy naming McLeod Foundation the owner and beneficiary, yet designating his gift to the Children's Hospital. Annually, Gene makes a donation to pay the premiums.

“[With the gift of life insurance] I can afford to give a substantial gift without the money having to come out of my pocket,” Gene says. And although the gift is not immediate, he realizes children will continue needing care in the future--and his gift will be available to help.

Thoughtful estate planning, such as Gene’s, can result in a generous gift--perhaps one not thought possible. Contact the McLeod Foundation at (843) 777-2694 to learn more.

To join the Players in providing for McLeod's future, contact Roxanna Tinsley at (843) 777-2694 or rtinsley@mcleodhealth.org.

Making a Gift of Your Policy
You may wish to transfer ownership of a policy to the charity, or purchase a new policy with the charity as owner and beneficiary. If you make a charity the owner and beneficiary of a policy, you are entitled to certain tax advantages.

The Walker children were very supportive of the idea. In fact, one of their children purchased a small whole life policy and designated the charity as the owner and irrevocable beneficiary. As a result, the annual premiums that are paid are a charitable deduction.

Insuring a Gift to McLeod Health

Carroll and Nancy Player firmly believe in McLeod Regional Medical Center's mission to provide excellent regional medical care to the residents of northeastern South Carolina, and they act on their belief through valuable ongoing volunteer and financial support. Carroll has served on the McLeod Health Foundation Board almost since its inception 20 years ago. A respected local dentist well known for his community service, he says serving on the Foundation Board has been a great learning experience for him.

"It has given me good insight into the high quality of patient care and efficiency at McLeod," Carroll says.

Nancy, also a dedicated McLeod volunteer, previously chaired the Children's Miracle Network Celebration and continues to raise funds for the McLeod Children's Hospital. The Players raised a son and daughter who both became medical professionals, and today they enjoy four grandchildren. Their son, Dr. Keith Player, is a practicing general surgeon at McLeod. Their daughter and son-in-law are both practicing occupational therapists in Georgia, who while still in their 30s have set up a foundation to help children in need receive therapy. "Our children learned the value of philanthropy by example, and we're very proud to have planted that seed of giving in them," Nancy says.

Carroll says they chose to make a planned gift through the Foundation because of their strong feelings about supporting McLeod. Their financial planner, Wendell Jones, and tax attorney, Michael Roberts, helped them select and designate a gift of life insurance. "We had a life insurance policy that is more than we need now, so we're using it to benefit McLeod after our lifetimes," he says. "It was a simple avenue for making a gift, and we are happy to have the opportunity. We think McLeod's future is very bright."

"When you feel blessed, you want to give back," Nancy adds.

To join the Players in providing for McLeod's future, contact Roxanna Tinsley at (843) 777-2694 or rtinsley@mcleodhealth.org.

Wealth Replacement Using Life Insurance
A donor may make a current gift to charity and receive a charitable tax deduction. At the same time, the donor may purchase life insurance to replace the donated amount or perhaps, the amount after estate tax that the beneficiaries would have received. Depending on the circumstances, the charitable tax savings and any life income resulting from the gift may defray the cost of the wealth replacement insurance premiums.

Example:
John Abbott, age 60, wants to make a gift that will ultimately be used to purchase equipment for a charity he has supported for years, but he is also concerned for his children and their futures. He creates a 6 percent Charitable Remainder Unitrust for $100,000, which yields a tax savings to him of $13,307. He then purchases a $100,000 whole life insurance policy that will maintain his children's inheritance. His annual premium payments are $4,500, which he pays for the first three years from his tax savings and subsequently with the increased income from his trust.

As with all matters concerning estate planning, please consult your estate and tax specialists. Click here to return to Wills and Bequests.