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Life Insurance – The Hidden Gift Asset
Our supporters often overlook the benefits of giving a life insurance policy to The University of North Carolina at Asheville Foundation, Inc. If you are carrying more insurance coverage than your family obligations now require, you may want to consider gifting an unneeded, paid-up policy. If you transfer all rights and incidents of ownership of your policy to the UNC Asheville Foundation, Inc., you will be eligible for a charitable income tax deduction equal to the policy’s cash surrender value or cost basis, whichever is less. The insurance policy must be whole life, not term insurance. The value of your gift for gift crediting purposes will be the cash surrender value of your policy on the date of transfer.
In certain cases, The University of North Carolina at Asheville Foundation, Inc will accept gifts of insurance policies for which continuing premiums are due. If you irrevocably transfer all rights and incidents of ownership of such a policy to the UNC Asheville Foundation, Inc., the UNC Asheville Foundation, Inc. may elect to continue to pay the premiums. You may take an initial deduction for the cash value of the policy, and you may deduct any additional gifts you make to the UNC Asheville Foundation, Inc. in lieu of premiums.
The University of North Carolina at Asheville Foundation, Inc. reserves the right to cash in any policy it owns at any time at its sole discretion. Of course, you may designate the UNC Asheville Foundation, Inc. as the revocable beneficiary of a life insurance policy at any time. Such a designation will not, however, provide you with any immediate tax benefits.
This information is not intended to be considered legal, tax or other professional advice. We encourage you to consult an attorney and/or professional tax advisor before making any material decisions regarding this gift option and other matters regarding charitable giving.
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