A gift of Life Insurance is an easy way to support the University of Kentucky, especially if the policy was originally purchased to provide protection for dependent children or as part of a business partnership, and is now no longer needed. Both new insurance policies and those no longer needed to protect beneficiaries can be given to UK. Naming the University as the owner and beneficiary of a paid-up Life Insurance policy entitles you to an income tax deduction equal to the cost basis in the policy, or its replacement cost, whichever is less. Giving a policy that is not paid up provides an income tax deduction approximately equal to the policy’s cash surrender value. Making the University of Kentucky the owner and beneficiary of a new policy provides an income tax deduction for the annual premium you give to UK to keep the policy in force. Simply naming the University as the beneficiary of an existing policy is another way to use insurance for a charitable gift. In this scenario, you do not receive any income tax deduction, but your estate will be entitled to a charitable gift deduction for the full amount of the policy.
For additional information, please contact:
Ford Stanley, Senior Director of Estate and Gift Planning, Executive Director of University of Kentucky Real Estate Foundation