Individuals may transfer life insurance policies to a charity or purchase new policies, and the charity may elect to cash them in for their cash value or hold on to them for collection of the face amount upon the donor’s death.
By naming Georgia Sheriffs’ Youth Homes Foundation as the owner and beneficiary of a life insurance policy:
You receive a present charitable deduction for an amount close to the cash value of the policy. If you continue to pay the premiums on such a policy transferred to GSYH Foundation, then you can deduct the amount of the premiums as a charitable deduction.
The donor receives no current income tax deduction if a charity is merely named the beneficiary of a life insurance policy and the policy owner/donor retains the right to change the beneficiary.