A gift of life insurance that you no longer need can be an easy way for you to provide generous support to Washington and Lee University.
Your gifts to Washington and Lee help to provide a liberal arts education that develops students' capacity to think freely, critically, and humanely and to conduct themselves with honor, integrity, and civility. It will provide Washington and Lee with the resources to…
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| prepare graduates for life-long learning; | foster responsible leadership and service to others; | be engaged in citizenship for a global and diverse society. |
The Case for Giving
The following alumni and friends have honored Washington and Lee with a gift, and we honor them in return.
When W&L becomes the owner of your policy we can cash it in and use the proceeds. Alternatively, if you continue to pay the premiums, we could maintain the policy until it ends and then receive the full death benefit amount. In addition to the satisfaction of making a generous gift to W&L with no immediate cost, you will receive an immediate income tax charitable deduction for the value of your policy (or the total premiums you have paid, whichever is less) and an additional income tax deduction if you continue to pay premiums.
In order to make your gift, you must assign W&L all ownership rights to your policy and make W&L the irrevocable designated beneficiary of the policy.
The life is the donors, but the charity owns the policy, and they get the beneficiary rights.
This can be easily accomplished by completing a simple form from your insurance company. Be sure to identify us as: Washington and Lee University, 204 W. Washington Street, Lexington, VA 24450, Federal Tax Identification Number: 54-0505977.
Ethel Byrd bought a $250,000 life insurance policy on her own life shortly after the birth of the first of her four children. They are now in their 40s and 50s and no longer need the financial protection the policy provides. The cash value of her policy is now over $90,000, and she’s paid a total of $75,000 in premiums over the years.
Ethel has enjoyed a relationship of many years with W&L, and would like to make a significant gift, but is reluctant to use her liquid assets. Ethel is delighted to learn that her insurance policy can be put to a new and productive use. She arranges with her insurance agent to donate her policy.
You can designate W&L to receive some or all of your policy’s death benefit but retain ownership of the policy. You will have the satisfaction of making a generous gift to W&L with no immediate cost to you.
This option allows you to change your mind about your gift should circumstances in your life change. Because your gift is revocable, you do not receive an income tax charitable deduction for your gifts, but your estate will receive an estate tax deduction for the amount your policy distributes to us.
It is very easy to designate W&L as a beneficiary of your life insurance policy. Simply contact your insurance agent to make a change in your policy’s beneficiary designation. Be sure to identify us as: Washington and Lee University, 204 W. Washington Street, Lexington, VA 24450, Federal Tax Identification Number: 54-0505977.
If you give a life insurance policy on which you have an outstanding unpaid loan, you may have to declare a portion of the loan as taxable income. Check with your financial advisor; it may be best to pay off the loan prior to making your gift. If you plan to designate W&L as a beneficiary of your policy (Option 2), an unpaid loan against your policy will not affect your tax picture.
Sometimes a life insurance policy may be “paid-up” which means it will stay active without any additional premium payments. A paid-up life insurance policy is a valuable asset and makes an excellent gift.
For your gift of life insurance to be valid, your state of residence must consider a charity to have an “insurable interest” in your policy. Most states do but verify that this is true in your state before you make your gift.
Ethel Byrd bought a $250,000 life insurance policy on her own life shortly after the birth of the first of her four children. Her policy has been paid-up for years and her children, who are now in their 40s and 50s, no longer need the financial protection the policy provides. The cash value of her policy is now over $90,000, and she's paid $75,000 in premiums.
Byrd has enjoyed a relationship of many years with W&L, and would like to honor their relationship with a significant gift. However, she has been reluctant to use her liquid assets to make the gift. When Byrd learns that her policy can be put to a new and productive use, she is delighted. She arranges with her insurance agent to donate her policy.
