UNDERSTANDING THE OPTION
The simplest approach is often to name the Episcopal Diocese of Chicago as a full, partial, or contingent beneficiary while retaining ownership of the policy. The donor can generally change the designation later.
A donor may also consider transferring ownership of a policy. That is a present, usually irrevocable gift and requires advance review of the policy, premiums, value, and the organization’s acceptance rules.
Deductions and future premium gifts depend on the policy and arrangement. An insurer, attorney, and tax advisor should review the details.
Why donors consider it
- Beneficiary designations can remain revocable
- Can use a policy no longer needed for family protection
- May create a larger future gift than current cash flow would allow
A thoughtful process
- Ask the insurer for current policy and beneficiary information
- Decide whether a beneficiary gift or ownership transfer fits your goal
- Contact the Episcopal Diocese of Chicago before transferring ownership
- Submit the insurer’s form and save confirmation
Points to discuss with your advisors
- A beneficiary gift generally creates no current deduction
- Policy loans and unpaid premiums matter
- The nonprofit may choose whether to retain or surrender an owned policy
This overview is not legal, tax, investment, or financial advice and does not confirm that the Episcopal Diocese of Chicago can accept a particular asset or arrangement. Please consult qualified advisors and contact the Episcopal Diocese of Chicago before taking action.