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Hello all, I have a donor who transferred ownership of an existing whole life policy. When the ownership was transferred the beneficiary information was not updated thus the beneficiary at the date of transfer, and still as of today, are members of the donor's family. The donor is now asking for a receipt on the cash surrender value of the policy. I'm reluctant to provide a receipt while we are not currently listed as the beneficiary. I understand from pub. 526 that the donor may not deduct the value if the policy has a family member listed as the beneficiary, but does that matter if we know we will be changing the beneficiary shortly? Any advice is appreciated! -- Mandy L. L. Smith Director of Gifts and Records Management Development & Alumni Relations Virginia Commonwealth University PO Box 842026 111 N. Fourth St. Richmond, VA 23219 (804) 828-0348 mlsmith4@vcu.edu The information contained in this message may be privileged and confidential and protected from disclosure. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by replying to this message and deleting it from your computer.

No, it doesn't matter. The donation has not been concluded. Only when you are owner and beneficiary can you issue a receipt. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Fri, Feb 1, 2019 at 11:37 AM Mandy Smith <mlsmith4@vcu.edu> wrote: > Hello all, > > I have a donor who transferred ownership of an existing whole life policy. > When the ownership was transferred the beneficiary information was not > updated thus the beneficiary at the date of transfer, and still as of > today, are members of the donor's family. The donor is now asking for a > receipt on the cash surrender value of the policy. I'm reluctant to provide > a receipt while we are not currently listed as the beneficiary. I > understand from pub. 526 that the donor may not deduct the value if the > policy has a family member listed as the beneficiary, but does that matter > if we know we will be changing the beneficiary shortly? > > Any advice is appreciated! > > -- > > Mandy L. L. Smith > Director of Gifts and Records Management > Development & Alumni Relations > Virginia Commonwealth University > PO Box 842026 > 111 N. Fourth St. > Richmond, VA 23219 > (804) 828-0348 > mlsmith4@vcu.edu > > The information contained in this message may be privileged and > confidential and protected from disclosure. If the reader of this message > is not the intended recipient, you are hereby notified that any > dissemination, distribution or copying of this communication is strictly > prohibited. If you have received this communication in error, please notify > us immediately by replying to this message and deleting it from your > computer. > >

To piggyback on this question, once the donation is complete. Would you issue a receipt similar to a gift-in-kind receipt with only a description rather than a value of what was received? Or is it appropriate to include the cash surrender value at the time ownership of the life insurance policy was transferred? Thank you for any assistance! ​Courtney B. Rowe, MPA, MBA Associate Director, Gifts and Records Management Manager, Stewardship & Compliance Office of Development and Alumni Relations Virginia Commonwealth University

The gift of a life insurance policy (not the subsequent premium payments) is a property gift. In fact, the donor may need a qualified appraisal and an 8283 to claim a deduction. Anyway, it is the donor's responsibility to determine the interpolated terminal reserve (that's the legal term - not "cash surrender" - for what is deductible). So no value should go on the receipt. John John H. Taylor Principal, John H. Taylor Consulting 2604 Sevier St. Durham, NC 27705 johntaylorconsulting@gmail.com 919.816.5903 (cell/text) Serving the Advancement Community Since 1987 On Wed, Feb 13, 2019 at 1:50 PM Courtney Rowe <cbrowe@vcu.edu> wrote: > To piggyback on this question, once the donation is complete. Would you > issue a receipt similar to a gift-in-kind receipt with only a description > rather than a value of what was received? Or is it appropriate to include > the cash surrender value at the time ownership of the life insurance policy > was transferred? > > Thank you for any assistance! > > > ​Courtney B. Rowe, MPA, MBA > Associate Director, Gifts and Records Management > Manager, Stewardship & Compliance > Office of Development and Alumni Relations > Virginia Commonwealth University >

Thank you! This is really helpful. Courtney Courtney Buckio Rowe, MPA, MBA Associate Director, Gifts and Records Management Manager, Stewardship & Compliance Office of Development and Alumni Relations Virginia Commonwealth University 111 N. 4th Street Box 842039 Richmond, VA 23219 (804) 828-2048 *cbrowe@vcu.edu <cbrowe@vcu.edu>* On Wed, Feb 13, 2019 at 1:56 PM John Taylor <johntaylorconsulting@gmail.com> wrote: > The gift of a life insurance policy (not the subsequent premium payments) > is a property gift. In fact, the donor may need a qualified appraisal and > an 8283 to claim a deduction. Anyway, it is the donor's responsibility to > determine the interpolated terminal reserve (that's the legal term - not > "cash surrender" - for what is deductible). So no value should go on the > receipt. > > John > > John H. Taylor > Principal, John H. Taylor Consulting > 2604 Sevier St. > Durham, NC 27705 > johntaylorconsulting@gmail.com > 919.816.5903 (cell/text) > > Serving the Advancement Community Since 1987 > > > On Wed, Feb 13, 2019 at 1:50 PM Courtney Rowe <cbrowe@vcu.edu> wrote: > >> To piggyback on this question, once the donation is complete. Would you >> issue a receipt similar to a gift-in-kind receipt with only a description >> rather than a value of what was received? Or is it appropriate to include >> the cash surrender value at the time ownership of the life insurance policy >> was transferred? >> >> Thank you for any assistance! >> >> >> Courtney B. Rowe, MPA, MBA >> Associate Director, Gifts and Records Management >> Manager, Stewardship & Compliance >> Office of Development and Alumni Relations >> Virginia Commonwealth University >> >