You transfer ownership of a paid-up life insurance policy to witf. witf elects to cash in the policy when received or hold it.
How do I arrange a gift from my life insurance?
Simply contact your life insurance company and request a Change of Beneficiary/Ownership Form. Designate witf as the new owner and beneficiary of your policy.
What are the tax implications of a gift of life insurance?
If you give your policy to witf while you are still alive, you will receive an immediate income tax deduction for the current value of the policy. In order for you to get this deduction when witf is the policy owner, you make donations to witf so we have funds to pay the insurance premiums. In other words, the donor covers the premium payments that witf now makes on the gifted policy by making regular additional monetary gifts to the witf. If you retain ownership of the policy, benefits payable to witf at death can save you federal and state estate taxes depending on the size of your estate and your state of domicile.
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