You may wish to donate a life insurance policy to one of Saint Mary's entities. There are two ways to do this: First, you may make Saint Mary's Foundation the owner of the policy. Second, you may name a Saint Mary's as the beneficiary of your policy.
If you make Saint Mary's the owner of the policy:
- You get an immediate income tax deduction.
- If the policy is fully paid, your deduction is equal to the replacement value of the policy.
- If the value exceeds the tax or cost basis, the deduction is limited to the tax basis.
- If premiums remain to be paid, the deduction is approximately equal to the cash surrender value. You can continue to pay the premiums and get a charitable contribution deduction. Alternatively, you can contribute the amount of the premiums to Saint Mary's and we will pay the premiums.
- If Saint Mary's doesn't have to pay premiums, your contribution is fully deductible.
If you name Saint Mary's as the beneficiary of your policy:
- This is revocable and can't be counted for any immediate tax savings.
- However, at your death your executor may take a federal estate tax charitable deduction for the entire amount.
Life insurance donations work well with other types of donations. Discuss donating life insurance with a member of our staff now. You can contact us by email at paul.laxalt@chw.edu, by fax at (775) 770-3545 or by telephone at (775) 770-3519.
The information on this site is not intended as legal advice. For legal advice, please consult an attorney.
