The Magazine of IEEE-Eta Kappa Nu October 2017 - 32

IN THE SPOTLIGHT

Leaving a Legacy
By Stan Retif, IEEE Foundation, s.retif@ieee.org
People care.
They care about the needy and the underprivileged.
They care about providing education to children and
health care to the sick. They care about preserving
history and celebrating culture. It truly is a remarkable
phenomenon.
Every year millions of people make charitable gifts to
organizations in whose mission they believe. Most
gifts are made in cash, securities or some other liquid
vehicle. Unfortunately those in a position to give don't
always consider the variety of options available to them.
In previous issues of The Bridge, we have discussed
the importance of estate planning. Time and effort
spent planning today can ensure that your wishes are
followed tomorrow. They can give you confidence that
your estate will be directed as appropriate, and provide
peace of mind to those you love.
Many donors in these situations have an asset that they
don't normally consider when they think philanthropically
- life insurance. In today's society life insurance has
become increasingly prevalent. As such, donors who
own policies would be wise to consider life insurance
as an effective way of providing support to people and
causes that they hold dear.
Making a gift of a life insurance policy can often
significantly reduce a prospective donor's taxable estate,
which can result in substantial tax savings depending
upon the donor's income and potential tax liability.
Gifting a policy can provide an immediate tax deduction

32

of the fair market value of the donor's policy. As you can
imagine, this can result in quite significant deductions,
depending on the circumstances.
Some important points to remember when considering
a gift to a charitable organization, such as IEEE-Eta Kappa
Nu (HKN) include:
*
*

*
*

IEEE-HKN receives the entire amount of the policy
upon the death of the insured;
There is no cap on the size of the policy that may
be donated to IEEE-HKN, since charitable donations
have no ceiling for estate tax purposes;
In most cases such a gift does not alter a donor's
current investment strategy;
Such an arrangement may provide a creative way to
dispose of a policy that was originally meant to cover
a need that may no longer exist.

Naming IEEE-HKN as the beneficiary of your life insurance
may be the simplest way to enact this transaction. It is
a win-win for both IEEE-HKN and the donor. IEEE-HKN
receives the proceeds from the policy, and by virtue of
the gift, the donor's taxable estate is reduced by the
amount of the death benefit.
To recap, by either gifting a policy or naming IEEE-HKN
as beneficiary, donors can provide their beloved honor
society with significant major support, thus providing a
lasting legacy for a cause they hold dear. While the IEEE
Foundation stands ready to assist donors considering
such a transaction, it is always wise to first consult your
own insurance agent or estate planner.

www.hkn.org //

THE BRIDGE


http://www.hkn.org

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http://www.brightcopy.net/allen/brid/113-3
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http://www.brightcopy.net/allen/brid/113-1
http://www.brightcopy.net/allen/brid/112-3
http://www.brightcopy.net/allen/brid/112-2
http://www.brightcopy.net/allen/brid/112-1
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