Make MCHT a Beneficiary

Life Insurance

The benefits of donating life insurance are often overlooked. For those carrying more life insurance coverage than personal or family obligations require, there are several life insurance gifting options to consider.

One opportunity is to make MCHT both the owner and beneficiary of a paid-up whole life insurance policy. Because it is paid in full, the value for MCHT’s gift crediting and accounting purposes is the policy’s replacement value. A donor in this case will receive an income tax charitable deduction in an amount approximating the policy’s replacement value.

A second option is to name MCHT the owner and beneficiary of a partially paid up policy. In this case, the value of the gift for MCHT’s gift crediting and accounting purposes is the policy’s cash surrender value. The donor’s income tax charitable deduction is approximately that same cash surrender value. Or by agreement, the donor may choose to continue to make premium payments for that policy and benefit from an additional income tax charitable deduction for most of that premium payment each time it is made. In any case in which MCHT becomes the owner and beneficiary of these whole life policies, it reserves the right to cash in such policies at any time at its sole discretion.

For those who have term or other life insurance policies, donors can assign MCHT all or a portion of the death benefit as a future gift. There is no income tax charitable deduction for these types of gifts. These are much like a bequest. Like similar legacy gifts, they help to advance MCHT’s future mission. Change of beneficiary forms can be obtained from the insurance agent or from the company issuing the insurance.

To request a personal illustration, please contact David Warren, Planned Giving and Major Gifts Officer. All illustrations and conversations will be done on a strictly confidential basis.

Retirement Assets

Designating MCHT as the beneficiary of a retirement account (401(k), IRA, or other qualified plan) is a great way for a donor to support MCHT while reducing estate and income tax liabilities.

To pursue this gift option, ask a retirement plan administrator for a beneficiary designation form. Use that form to identify MCHT and other charities for designation, and identify the amount or percentage allocated to each. If personal circumstances change, the amount or percentage left to MCHT can also be changed by completing a new form. Personal withdrawals from the retirement account(s) continue to be permissible during the donor’s lifetime.

To exercise this option, you simply need to know MCHT’s legal name – Maine Coast Heritage Trust – and tax ID number: 23-7099105.

To request a personal illustration, please contact David Warren, Planned Giving and Major Gifts Officer. All illustrations and conversations will be done on a strictly confidential basis.