By naming Saratoga Bridges as the owner and beneficiary of an existing or paid-up life insurance policy you may receive an immediate income tax deduction. Please contact Heather Varney at 518-587-0723 ext. 1266 before transferring ownership of a life insurance policy to Saratoga Bridges.
Life Insurance Example
A number of years ago Leo purchased a $50,000 whole-life policy to ensure funding of his children’s college education. The annual premium for the policy of $1,000. His children have graduated and are financially independent. The policy has a fair-market value of $22,000 and the net premiums paid equal $23,000. Leo assigns the policy to Saratoga Bridges. Based on his 30% tax bracket he realizes an immediate tax savings of $6,600. From that point on Leo increases his annual gifts to Saratoga Bridges by $1,000. Saratoga Bridges, in turn, pays the insurance premium. Leo also realizes an annual tax deduction of $1,000, based on his annual gifts for that purpose.
You may also designate Saratoga Bridges as a full or partial beneficiary of life insurance provided by your employer if you feel you do not need this additional coverage. This will not give you an immediate tax deduction but will remove the proceeds of the policy from your taxable estate.