San Jose State University

Change Lives With Life Insurance

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© The Stelter Company The information in this publication is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. San Jose State University Office of Planned Giving One Washington Square San Jose, CA 95192-0257 408-924-1473 planned.giving@sjsu.edu Find Out More When considering any of these charitable arrangements, it is especially critical to have a skilled planning team with expertise in finance, law, taxes and life insurance. We would be happy to answer any questions regarding charitable giving that you or your advisor may have. Feel free to contact us at no obligation. 2] Retain Ownership of an Existing Policy With a Revocable Gift If you would rather retain ownership of a policy for your own financial security or that of others, you have the following options. • Name SJSU as the sole or partial primary beneficiary of the policy, while you retain the right to change the beneficiary as owner of the policy. • Name us as the contingent beneficiary, so we receive the death benefits only if your primary beneficiary predeceases you. • Create a separate trust named to receive the death benefits, with terms providing for the financial support for one or more named loved ones for a specific term of years or for life, after which the trust terminates and its assets pass to us. These options do not produce a current federal income tax charitable deduction, but they can provide the satisfaction of knowing we will receive some benefits if certain events occur and the arrangement is left unchanged. Any amounts payable to us at your death will not be subject to federal estate tax. 3 ] Create a New Policy for Future Charitable Gifts In most states, you can enter into a new insurance contract with a charitable organization such as SJSU as the beneficiary and owner of the policy. Greater leverage is possible when two donors, usually husband and wife, purchase a two-life, second-to-die policy. With two lifetimes before payment of benefits, a desired future gift to us may be obtained for substantially fewer premium dollars. These policies are typically available even if one spouse is not insurable and are generally more economical than a policy only on the insurable spouse. When you retain ownership of a policy but name SJSU as the beneficiary, any amount payable at death will not be subject to federal estate tax.

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