If you choose to contribute a life insurance policy to the Northshore Schools Foundation, you may have an opportunity to make a wonderful gift to benefit students while at the same time reducing estate taxes that may otherwise be due upon your death. Additional ways to donate all or part of your life insurance policy are outlined below.
Gifts of the Cash Surrender Value of a Policy
It is possible to receive a charitable income-tax deduction for the cash surrender value of a life insurance policy when you irrevocably assign the policy to the Northshore Schools Foundation. Be sure to use our legal name and address as follows:
The Northshore Schools Foundation 91-1680139
3330 Monte Villa Parkway
Bothell, WA 98021
Gifts of Percentage Interest in a Policy
You may choose to designate the Northshore Schools Foundation to receive only a partial interest, usually a percentage, of a life insurance policy.
Gifts of New or Partial-Paid Policies
You may assign a partially paid policy to the Northshore Schools Foundation and keep the policy active by sending premium payments to the Northshore Schools Foundation. Alternatively,you may purchase a new policy and name the Northshore Schools Foundation as owner and irrevocable beneficiary. All of your payments would be tax deductible if you itemize deductions.
Gifts That Reduce Capital Gains Taxes
Gifts of securities can be used to cover the payments on a new or partially paid life insurance policy, with the Northshore Schools Foundation named as a beneficiary. By donating securities, Capital Gain taxes can be entirely eliminated.
The dividends of a whole life insurance policy may be designated to the Northshore Schools Foundation without reducing the benefit value of the policy for your beneficiaries upon your death. The donor, who remains the owner of the policy, retains the right to borrow against the policy.
Naming the Northshore Schools Foundation as Beneficiary
Another option is to name the Northshore Schools Foundation as the primary beneficiary or co-beneficiary of a life insurance policy. You would retain ownership of the policy and have access to the policy’s cash value. Because you retain ownership, no charitable income-tax deduction would be allowed at the time of the gift. However, although the face value of the policy would be included in your gross estate at your death, your estate would be entitled to an offsetting charitable estate-tax deduction.