I want to set up a life insurance policy, name the Art Institute of Chicago 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 would say that, as the owner of the policy, you could change the beneficiary designation to a friend or family member. The Art Institute of Chicago must be made the irrevocable owner of the policy for the offsetting premium payments to be deductible. 6. Can I transfer my IRA to the Art Institute of Chicago 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. 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
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- I want to set up a life insurance policy, name the Art Institute of Chicago as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make?
