Life Insurance

Did you know that you can make a legacy gift with your life insurance policy? It is an opportunity to benefit students and reduce estate taxes that might otherwise be due upon your death. There are several ways to make a gift of life insurance.

Gifts of the Cash Surrender Value of a Policy
It is possible to receive a charitable income-tax deduction for the cash surrender value of a life insurance policy. To do this, you irrevocably assign the policy to the Northshore Schools Foundation Endowment.

Gifts of Percentage Interest in a Policy
You also can choose to name the Northshore Schools Foundation Endowment to receive only a partial interest, usually a percentage, of a life insurance policy.

Gifts of New or Partial-Paid Policies
You may assign a partially paid policy to the Northshore Schools Foundation Endowment and keep the policy active by sending premium payments to the Northshore Schools Foundation Endowment.

Gifts That Reduce Capital Gains Taxes
Gifts of securities can cover the payments on a new or partially paid life insurance policy, with the Northshore Schools Foundation Endowment named as a beneficiary. By donating securities, capital gain taxes can be eliminated.

Insurance Dividends
The dividends of an entire life insurance policy may be designated to the Northshore Schools Foundation Endowment without reducing the benefit value of the policy for your beneficiaries upon your death. The donor, who remains the owner of the policy, retains the right to borrow against the policy.

Naming the Northshore Schools Foundation as Beneficiary
Another option is to name the Northshore Schools Foundation Endowment as the primary beneficiary or co-beneficiary of a life insurance policy. You would keep ownership of the policy and have access to the policy’s cash value. Because you keep ownership, there is no charitable income-tax deduction at the time of the gift. The face value of the policy would be included in your gross estate at your death. At that time, your estate would be entitled to an offsetting charitable estate-tax deduction.

Whatever your choice, please be sure to use our legal name and address as follows:
The Northshore Schools Foundation 91-1680139
3330 Monte Villa Parkway
Bothell, WA 98021

Please contact us at legacy@nsdfoundation.org to discuss legacy giving options.