Leaving a Legacy Through Life Insurance

For Eddie and Beverly, looking for a way to leave a legacy with the blessings they'd received in their lives, caused them to ponder the values they hold dear. "Catholic education rose to the top of the list," said Eddie. "We feel so strongly about the value of a Catholic education in a child's life."

Eddie went on to share that in society today, the values they hold dear are being taught in Catholic schools. "We see the difference it has made in the lives of our grandchildren," adds Beverly. "We are so pleased with the way their characters have developed and we attribute that to their education in the JPII Catholic Schools. And good parenting."

The Eddie and Beverly wanted to help more students get a chance to have a Catholic school education through their Family Endowment and they also had a special desire to help JPII Teachers through the Teacher Salary Endowment. "We see the good work our grandson Connor is doing for the JPII Schools and he is surrounded by so many excellent teachers." Said Eddie. "We wanted to help these great teachers continue their good work and this endowment will help provide better incomes for their families so that they can stay teaching in our schools."

Eddie and Bev consulted with their son, Dan, an attorney, looking for the best way to make a gift to help the schools. Dan connected them with John J. Klocke, director of advancement for JPII Schools to talk about some good ways to give. The ND Endowment Credit was discussed with its benefit of a 40% state income tax credit for gifts of $5,000 or more per year to a qualified ND Endowment fund. Gifts to all JPII Endowment Funds are qualified under this ND statute.

They also asked Klocke about a life insurance policy they had. "It was paid up and was no longer growing in value, and most important, we no longer needed it, said Eddie. "We had taken out the policy when the family was young and now our kids are out in the world and are successful. The original need for the policy just doesn't exist." Said Eddie.

They then ran the idea by their insurance agent and their CPA and also received charitable information from Klocke on the tax credit. Together they determined they could actually remove cash value from the policy on a tax-free basis to fund the two gifts. One gift to the family scholarship endowment and the other to the Teacher Salary Endowment. The gifts allowed both a Federal tax deduction and the state income tax endowment credit and it allowed them to keep their own personal cash assets in the bank by tapping into an asset that was no longer needed.

"Mr. Klocke helped us see that great gifts can be made with assets other than cash," said Eddie. "I would recommend folks talk to Klocke when planning a gift to hear more about the various options. Then you can take those ideas to your own financial advisors and see if they are a fit."

Klocke was happy to help them make a gift to their favorite endowments. "These endowed funds pay out interest on the principal only every year so they provide gifts in perpetuity. We call them our "forever gifts" in support of students and teachers, said Klocke. "And the Eddie and Bev were very savvy in making a gift with paid up life insurance." Klocke added that over the years, many supporters have used life insurance assets in their giving plans. "Some folks can make a gift now and for others they make our schools a beneficiary. Both gifts earn a tax deduction in the year of the gift, said Klocke.

For more information on making a gift with life insurance, feel free to contact John Klocke at 701-893-3243 or e-mail John at [email protected].