Important Reminders About Giving Life Insurance Policies
1) It is important that you name Lawton Christian School as the irrevocable owner of the policy and not just the beneficiary if you intend to deduct your premium payments. The IRS does not allow deductions for your premium payments if you retain ownership of the policy.
2) If you have borrowed against a life insurance policy, a subsequent gift of the policy will create taxable income for you – the difference between the loan balance and the fair market value of the policy.