We wrote a policy for a “not for profit” to protect against losing the CEO, if passed.

the CEO is now retired, and the policy has approx. 32k in cash value but 14k in surrender charges.

The policy is owned by the company and the CEO is the insured. The company stated we can change the ownership to anyone.

I know we could possibly sell the policy, but the CEO is under 65 and healthy.

questions:
1. if the not for profit company wants to hand it over to the former CEO as a gift, is there any taxable amount that the CEO will have to claim on his taxes?

2. Is there any tax implication on the not for profit company?

Thank you and have a super weekend.
Douglas