You can make The Stony Brook School the owner of a whole life insurance policy or designate us as a beneficiary of a policy.
Making SBS Owner
If you make us the owner of an existing policy on which you are still paying premiums, you earn a charitable income tax deduction roughly equal to the policy's cash surrender value. Plus, you can deduct your premium payments every time you make them. Making a gift of a policy that is fully paid up gives you a different charitable deduction. We can help you figure out that value.
If you give us a new policy, then you can deduct all your premium payments over the life of the policy.
When making SBS the owner of a policy, whether existing or new, you are pledging to make premium payments for the duration required as they come due. SBS will receive premium notices and immediately notify the donor who will then make a gift to the School of at least the premium amount. Payments need to be timely so that SBS can pay the insurer on time. If gifted premium payments from the donor are more than 30 days late, then SBS has the option of cashing in the policy for the current cash surrender value. All gifted policies are otherwise irrevocable.
- More about paying premiums
If making SBS as the owner of your life insurance policy, why not make the premium payments to the School using stock? We'll sell the stock and make the payment to your insurer. You are essentially paying your premium with stock, still getting the same charitable deduction and avoiding the tax on capital gain. The full market value of your stock goes to paying the premium, not the market value minus the 15% tax on long-term capital gains.
Designating SBS as Beneficiary
If you don't want to transfer ownership, the other way to make a gift from life insurance is to name The Stony Brook School as the beneficiary of your policy. You will not earn a charitable deduction, but you can do this quite simply.
You can use your policy to care for your loved ones first, then name SBS as a percentage beneficiary. For instance, you might leave 75% of the death benefit to family and 25% to the School.
To make this simple gift, request a Change of Beneficiary form from your insurance company and fill it out using our legal name and tax ID number.
If you or your professional advisors have questions about making SBS the owner or beneficiary of a life insurance policy, please contact Kathy Sides, Director of Development, at 631-941-1551 or via email.