You can designate United Way of Olmsted County as partial, full or contingent beneficiary of your life insurance policy.
You will continue to own and can make use of the policy during your lifetime. The policy will be included in your taxable estate when you pass away. Your estate will benefit from an estate tax charitable deduction for the value of the gift to us. Your deduction for the gift of life insurance will depend on whether the policy has increased in value above the premiums and whether the policy is paid up or there are remaining payments to be made.
BENEFITS OF GIFTS OF LIFE INSURANCE
- Receive a charitable income tax deduction
- If United Way of Olmsted County retains the policy to maturity, you can receive additional tax deductions by making annual gifts so that we can pay the premiums
- If United Way of Olmsted County cashes in the policy, you will be able to see firsthand how your gift supports our charitable work
- If we retain the policy to maturity, or you name us as a beneficiary, once the policy matures, the proceeds of your policy will be paid to United Way of Olmsted County so that we can then use the proceeds to further local impact.
- Your deduction for the gift of life insurance may vary from face value.
- Gifts of Percentage Interest in a Policy: designate United Way of Olmsted County to receive only a partial interest (e.g., a percentage) of a life insurance policy.
- Gifts of New or Partial-Paid Policies: assign a partially paid policy to United Way of Olmsted County and keep the policy active by sending premium payments to United Way of Olmsted County. Or you may purchase a new policy and name United Way of Olmsted County as owner and irrevocable beneficiary. All of your payments would be tax deductible if you itemize.
- Gifts that Save Capital Gain: Gifts of securities can be used to cover the payments on a new or partially paid life insurance policy, with United Way of Olmsted County named as a beneficiary. By donating securities, capital-gain tax can be eliminated entirely.
- Insurance Dividends: designate the dividends of a whole life insurance policy to United Way of Olmsted County without reducing the death value of the policy for your beneficiaries. The donor, who remains the owner of the policy, retains the right to borrow against the policy.
- Name United Way of Olmsted County as the primary beneficiary or co-beneficiary of a life insurance policy: You would keep ownership of the policy and access to the policy’s cash value. Because you retain ownership, no charitable income-tax deduction is allowed at the time of the gift. Although the face value of the policy will be included in your gross estate at your death, your estate will be entitled to an offsetting charitable estate-tax deduction.
HOW TO MAKE A GIFT OF LIFE INSURANCE
To make a gift of life insurance, please contact your life insurance provider, request a beneficiary designation form from the insurer and include United Way of Olmsted County as the beneficiary of your policy.
Use our legal name and address as follows:
United Way of Olmsted County
903 West Center St, Ste 100
Rochester, MN 55902
If you have any questions about making a gift of a life insurance policy or designating United Way of Olmsted County as beneficiary of your policy, please contact Laken Jefferson at at email@example.com or 507-528-4830.
If you have already named us as a beneficiary of your life insurance policy, please let us know so we can properly thank you.