In fact, one of their children purchased a small whole life policy and designated the charity as the owner and irrevocable beneficiary
As a result, the annual premiums that are paid are a charitable deduction.
The purchaser of such a policy becomes the irrevocable beneficiary
of the policy on purchase.
Plan participants can make an irrevocable beneficiary
designation, usually an irrevocable trust for family members.
The simple use of an irrevocable beneficiary
designation will accomplish this estate tax exclusion; using an irrevocable trust named irrevocably as the beneficiary, the taxpayer can achieve a second estate bypass on the death of the surviving spouse.
Upon maturity, the life insurance company pays out the full face value to the new irrevocable beneficiary
The investor is named as an irrevocable beneficiary
on the policy.
Other options include naming a charity as the irrevocable beneficiary
of an existing policy or as the owner and beneficiary of a new one.
Upon the death of the policyholder, the life insurance company pays out the full value to the new irrevocable beneficiary