Frequently Asked Questions
- How do I leave a gift to ICC in my will?
Naming ICC as a beneficiary of a will is one of the most popular planned gifts to the association. You can give a specific dollar amount or a percentage of your estate. You can leave stocks, bonds, or real estate. You can even name ICC as a residual beneficiary. ICC will receive the remainder of your estate after all other bequests and taxes have been satisfied. Please see our Bequest page for sample bequest language to share with your advisor and family.
You can find detailed information about this type of gift in the Life-Income section of this site. You can also use our Gift Calculator to see how a charitable gift annuity may benefit you.
- How do I make a gift from my retirement plan?
You can include ICC as either a full or partial beneficiary of your individual retirement account, 401(k), or other retirement fund. You simply complete a beneficiary designation form from the plan manager and submit it to the company that holds the assets. Many beneficiary designation forms of these accounts require ICC’s tax ID number.
Retirement-plan assets are often subject to extremely high estate taxes, and income is fully taxable when received by an individual beneficiary. By naming ICC as the beneficiary of the retirement account, ICC receives the full amount, free of taxes. You can leave other assets, such as stock, to heirs without the negative tax consequences of leaving them your retirement-plan assets.
- Does ICC accept gifts of real estate?
Yes. Giving real estate is becoming a more common way to make a gift to ICC. You can give a primary residence, summer home, winter condo, or even commercial property to ICC. You provide vital support to ICC while receiving a charitable income-tax deduction up to 30% of your adjusted gross income. Please see our Real Estate page for more information on ways to give property.
- How can I make a gift of life insurance?
While most people own some form of life insurance because of its unique ability to meet a variety of needs for financial protection, its role in charitable giving is frequently overlooked. You may use life insurance as the direct funding medium of a gift, permitting you to make a substantial gift for a relatively modest annual outlay.
You may irrevocably assign an insurance policy to ICC and receive an immediate federal charitable income-tax deduction. You may also name ICC as a beneficiary while retaining ownership of the policy. In this case, there is no immediate federal charitable income-tax deduction. Please see our Life Insurance page for an illustration and example of making a gift of life insurance.
- What kind of policy makes a good gift?
Gifts of paid-up whole-life insurance typically produce the largest and most immediate charitable deductions. Policies still bearing premium payments usually generate a smaller immediate deduction. In order for ICC to accept gifts of life insurance on which premiums are still due, the underwriting company must certify that the policy will become self-funding within no more than ten years after being given to ICC. In this case, subsequent gifts to allow ICC to pay future premiums may be viewed as charitable deductions.
- Can I receive a tax deduction for making a gift of life insurance?
In order to obtain a charitable income-tax deduction for an assignment of life insurance to ICC, you cannot retain any rights (such as the right to change the beneficiary) in the policy.
Upon the irrevocable assignment of a life insurance policy, you are allowed an immediate federal charitable income-tax deduction for the lesser, of either the policy’s fair-market value or the net premiums paid. Income-tax deductions for contributions to enable ICC to pay subsequent premiums are also allowed.
If you name ICC as just the beneficiary of the policy but retain ownership, there is no charitable income-tax deduction allowed for the value of the policy upon designation of ICC as the beneficiary or for subsequent premium payments.
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