Christa Spause Reilly ’95 and Amy Spause Benner ’93, on the death of their husband, and brother-in-law respectively, Thomas N. Reilly, Jr. Kathryn Maahs ’96, on the death of her grandmother, Mary Foley Maahs Kimberly Franzoni Freimuth ’97, on the death of her uncle, Frederick A. Franzoni Christen Battipaglia ’03, on the death of her father, Joseph V. Battipaglia Brittany Fasy ’03 and Dana Fasy ’06, on the death of their grandmother, Gertrude T. Boyle Ryan Maureen LaNoce ’04, Alyssa Hirst ’07 and Sarah Hirst ’09, on the death of their uncle and grandfather, Augustine “Augie” LaNoce Katherine Pichola ’04, on the death of her grandfather, James J. McHugh Erica Reisenwitz ’04, on the death of her grandmother, Virginia “Ginny” Yerkes Reisenwitz Carol Shotzbarger ’04, on the death of her uncle, Gerard P. “Shotz” Shotzbarger, Esq. Emily Johnson ’05 and Laura Johnson ’08, on the death of their grandfather, James W. Nugent, Jr. Kristin LaGreca ’05 and Melanie LaGreca ’11, on the death of their grandfather, Anthony “Junie” LaGreca, Jr. Moira Bryers ’06, on the death of her grandmother, Sarah C. McIlhinney Alexandra James ’06, on the death of her grandmother, Mary Ellen Palmieri Joanna Dearolf ’08, on the death of her grandfather, Walter W. Dearolf, Jr. Megan Gimpel ’08, on the death of her grandmother, Sarah Kenny Horan
Christina Smith ’09 and Valerie Smith ’11, on the death of their grandmother, Dolories M. Streibig Smith Mercedes Bellam ’10, on the death of her grandmother, Marie Shanager McKeegan Stephanie Leone ’10, on the death of her grandfather, William E. Jendrowski, Jr. Carly Smart ’10 and Rebecca Smart ’14 on the death of their grandfather, Augustus J. Pedicone Stephanie Henrich ’11 and Lisa Henrich (Staff), on the death of their uncle and brother respectively, Jay D. Marcolina Morgan McCafferty ’11, on the death of her grandmother, Margaret Dinan McCafferty Heather McFarlane ’11, on the death of her aunt, Eleanor “Ellie” Zakrzewski Rowan Melissa Pfeifer ’11, on the death of her grandfather, Edward W. Pfeifer Maureen Gallagher ’12 and Tara Gallagher ’15 on the death of their grandfather, Peter P. Gallagher, Jr. Kelsey Robins ’12, on the death of her grandfather, Donald L. Robins Olivia Scanlon ’12, on the death of her uncle, William Edward Scanlon, Jr. Caroline Patton ’13, on the death of her grandmother, Alma Jean O’Donnell Mairead Glowacki ’14, on the death of her grandmother, Maryann Anderson Glowacki Catherine Murray ’14, on the death of her grandfather, John Randall McDonnell Leigh McFadden (staff), on the death of her grandmother, Rose F. Varga Christine Reily (cafeteria staff), on the death of her father, Harvey L. Schultz
Life Insurance & Charitable Giving continued from page 38 Tip: When you donate an existing policy, the amount of your deduction is either the value of the policy or your cost basis (net premiums paid), whichever is less. Tip: Premium payments made directly to the insurer may be considered to be gifts for the use of the Mount (rather than gifts to the Mount) and, as a result, may be deductible only up to 30 percent of your contribution base (your contribution base is generally equal to your adjusted gross income). On the other hand, if you make a cash donation to the Mount that is used to pay the premiums, your deduction is limited to 50 percent of your contribution base.
Donate a new policy to the Mount
How to do it: In order to use this strategy, you purchase a new insurance policy in the Mount’s name. You never own the policy. The Mount is the owner and beneficiary. You will make any future premium payments (unless it is a single premium policy). As the owner, the Mount will have access to any cash values during your life. Advantages and disadvantages The gift of the policy and any future premium payments you make will be deductible for both income tax and gift tax purposes. Further, because you never own the policy, the proceeds will not be included in your gross estate at your death (unless you
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die within three years of the transfer, and then your estate will also get an offsetting estate tax charitable deduction). However, because you do not own the policy, you do not have any control over and rights to the policy, including the ability to change the beneficiary or access the policy’s cash value. Caution: The IRS may treat this transaction as if the Mount itself had purchased the policy on your life. Most states require the purchaser of a policy to have an insurable interest in the life of the insured. If the Mount does not have an insurable interest, all deductions may be lost. If this is the case in your state, consider having your spouse purchase the policy and then immediately assign all rights to the Mount. Tip: When you donate a new policy, your deduction will generally be equal to your cost basis (i.e., initial premium) in the policy. Liz Barker is Vice President, Financial Advisor at RBC Wealth Management in Conshohocken, PA. For over 25 years, Liz has helped her clients identify their personal financial planning objectives and implement thoughtful, strategic plans to match their needs. Women “in transition” are of special interest to her practice for changing times of: divorce, retirement, relocation or widowhood. Please visit her website at www.lizbarker.com for timely market and financial information that is updated daily.