Life insurance can make an excellent charitable gift.
If you are carrying more insurance coverage than your family obligations now require, you may find a hidden gift asset in a paid-up policy.
Alternately, you could create a significant gift by taking out a new policy on your life and naming UMF as the owner and sole beneficiary, thus creating a future gift at a lower cost.
If UMF is both the owner and sole beneficiary, the premium payments are tax deductible. A gift of a paid-up policy produces a charitable deduction in the amount of the policy’s cash surrender value or basis, whichever is less.
- Transfer ownership of an existing policy by simply contacting your life insurance company and requesting a Change of Beneficiary/Ownership Form. Designate the University of Maine at Farmington as the new owner and beneficiary of your policy.
- Purchase a new policy with UMF as the owner and beneficiary. You will receive a charitable income tax deduction for the gift, as well as for additional contributions to cover the annual premium payments. Maximize your tax benefits further by gifting appreciated stock to cover the premiums.