A gift of a life insurance policy transfers ownership-and often beneficiary rights-from the donor to an individual or charity. For individuals, gifts may be part of equalization or creditor-protection planning. For charities, the donormay gift an existing policy, assign dividends, or continue making tax-deductible premium gifts when the charity is owner and beneficiary. Gift-tax and income-tax consequences depend on policy value, gain, and donee. Properly Executed, policy gifts can amplify charitable impact or shift wealth efficiently while coordinating with LIGHTs and other estate-planning vehicles.

Advisors help clients assign ownership to individuals or charities, disclose value and gain, and plan future premiums. Charitable gifts may generate deductions when the charity is owner and beneficiary. Records support tax reporting.