Life Insurance – The Hidden Gift Asset

Our supporters often overlook the benefits of giving a life insurance policy to Eckerd College. 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 Eckerd College, 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, Eckerd College 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 Eckerd College, Eckerd College 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 Eckerd College in lieu of premiums.

Eckerd College reserves the right to cash in any policy it owns at any time at its sole discretion. Of course, you may designate Eckerd College 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.

WARNING: Consult your legal and tax advisors before making any material decisions based on this information.

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E-mail us, complete the Personal Illustration form, or call us at (727) 864-8229 so that we can assist you.

Judi Schraer
Director of Gift Planning
Eckerd College
4200 54th Avenue South
St. Petersburg, FL 33711
(727) 864-8229