I want to set up a life insurance policy, name Childrens Aid as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make?
No. The IRS would not consider that a “completed gift” – they’d say that, as the owner of the policy, you could change the beneficiary designation to a friend or family member. Children’s Aid must be made the irrevocable owner of the policy for gifts offsetting premium payments to be deductible. 6. Can I transfer my IRA to The Children’s Aid Society to set up a life-income gift, and avoid income tax on the transfer? New legislation gives donors aged 70½ and older an opportunity to direct lifetime distributions from their IRAs to us without incurring income tax liability on the withdrawal. The provision will be in effect for just the 2006 and 2007 tax years. Distributions can total $100,000 per year, and must be made outright — they cannot fund a life-income gift. Just e-mail us and we’ll be happy to give you more information about this new charitable incentive. Donors younger than 70½ can make a withdrawal from their IRA or other type of retirement plan, pay income tax on the withdrawa
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