Life Insurance Policy / Retirement Plans

Life Insurance Policy
A donation of a life insurance policy allows you to make a gift to United Way of Greater Portland
at no cost to yourself. What could be easier?

You can donate a fully-paid life insurance policy by assigning the policy to United Way and designating United Way as beneficiary. It costs you nothing to make the change and you will receive an income tax deduction for the gift. Another cost-free method is to designate United Way as a beneficiary of all or a portion or your workplace life insurance policy.

If you are the director or trustee of an organization that has purchased a life insurance policy with you as the insured, you may designate United Way as a beneficiary.

Retirement Plans
You may know that pension plans, profit-sharing plans, 401(k) plans, 403 (b) plans and IRAs are not exempt from income tax. If you did not pay incomes taxes on your contribution before it went into the retirement plan, you will have to pay income tax when it comes out. If you name your children as the ultimate beneficiary of your retirement plan, your children will be responsible for paying the income tax because the inheritance is considered income to them. Retirement plans also can be subject to estate taxes. Therefore, the total tax liability from this asset could be as much as 70% of your child's inheritance!

To preserve your retirement plan assets by donating them, simply designate United Way as the beneficiary of a specific amount or the remainder of your plan. Notify your plan's administrator of your wish to change the beneficiary to United Way. A "change of beneficiary" form will be required.

 

Have you already made a planned gift to United Way? Need more information?
Please contact our Resource Development department at 207.874.1000. We would like to express our appreciation for your gift or answer any questions you may have about planned giving.

This information is solely for educational and illustrative purposes and is not to be considered legal, financial or tax advice. For specific recommendations, please consult your attorney, accountant or financial advisor. United Way of Greater Portland encourages donors to explore
all aspects, opportunities, costs and alternatives associated with gift planning decisions.

 

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