LIFE INSURANCE

Gifts of life insurance policies allow the donor to make a large gift to the school with only relatively small annual payments.  The donor names the school as the beneficiary on a new or existing policy, regardless of whether or not the premiums have been paid in full.  The donor continues make future premium payments.  Both the cash value of the policy and all future insurance premiums are income tax deductible.

Benefits of Donating a Life Insurance Policy

• Leaves a legacy for the school, aiding it in continuing its mission.
• Provides the donor with an immediate tax deduction for the cash value of the policy and future tax deductions for the payment of insurance premiums.
• May provide estate tax savings. *
• If the donor pays the premiums with the donation of highly appreciated stock that has been held for more than a year, capital gains taxes are eliminated.

* According to recent tax laws, the estate tax will be phased out gradually until 2009, be totally eliminated in 2010, and then return its 2001 levels in 2011, under a "sunset provision."  Thus, currently the estate of a Will executed after 2010 might be subject to taxes, which could be reduced by charitable remainder trusts.

For more information on planned gifts, please click this link and submit form. 

Return to Planned Giving Page