Tapping Into Under Utilized Gift Vehicle with Big Results

Gene Rothstein has been a member of the Real Estate and Construction Industry Board since 1981, while his wife Iris has served on the City of Hope (COH) Board of Directors since 1988 years and is currently on the Board of Regents, the Medical Center and Beckman Research Institute advisory boards.

Iris and Gene Rothstein are longtime advocates who gave back by making City of Hope the beneficiary of their life insurance policies.

The Rothsteins first came to COH in the 1970s, attracted by the groundbreaking diabetes research conducted by COH's late Rachmiel Levine, M.D., acknowledged as the father of modern diabetes research. Iris was a key player in forming the Founders for Diabetic Research group, one of the first affiliate groups at COH. In fact, the group honored the Rothsteins with The Spirit of Life® Award in 1978.

Having donated many gifts over the years, including outright cash and bonds, the Rothsteins were looking for other ways to give. They found it in an underutilized but highly beneficial gift vehicle: life insurance policies. Realizing they held policies worth $750,000 that they no longer needed, Gene consulted his financial advisor to explore options, other than canceling the policies, which would benefit him and the charity of his choice.

"Not many people know that you can easily convert an existing policy that you no longer need into a charitable gift," explains Gene. "However, before you change the beneficiary to your designated charity, the fair market value of the policy should be verified by a financial expert as that will determine the amount of your tax deduction."

"It's a great option for people who want to give but don't have significant liquid assets right now," adds Iris. "It's truly a 'win-win' situation for both parties."

While they laughingly refer to themselves as "professional volunteers," Iris and Gene both agree they have gained far more than they have given by supporting COH.