The shelter will reopen tomorrow, Tuesday, August 20 for regular business hours.
By making a gift of a life insurance policy or your retirement account to the Maryland SPCA, you can play an important role in improving the welfare of animals in the community. By using either of these two strategies, you can make a larger gift than an outright cash gift. Often, you can make the gift with little or no loss of income and, at the same time, receive a substantial tax deduction. By making a gift of a life insurance policy or your retirement account to the Maryland SPCA, you can play an important role in improving the welfare of animals in the community.
Life insurance often is an important part of a financial plan, but circumstances change that sometimes makes a life insurance policy less significant to you. For example, you may have purchased a policy some years ago to provide protection for children who are now grown. If you have coverage you no longer need, you may want to consider contributing a fully paid “whole life” insurance policy to the Maryland SPCA. There are two ways this can be done. The simplest way is to make the Maryland SPCA, Inc. the beneficiary. This doesn’t provide any tax benefits because the decision to name a beneficiary is revocable. Some people choose to make the Maryland SPCA, Inc. a contingent beneficiary, meaning that if the primary beneficiary dies first, the proceeds from the policy go to the Maryland SPCA upon the policy owner’s death.
If making a gift and receiving a tax benefit are important to you, transferring ownership of the policy to the Maryland SPCA, Inc. and naming it as the beneficiary is the way to go. Transferring ownership is irrevocable, and it is this feature that enables donors to receive a tax benefit for the cash value of the policy. As the donor, you are still the insured individual; however, the policy ownership is transferred to the Maryland SPCA and it will receive the proceeds.
Example: John purchased a whole life policy in 1963 when his children were young. They are now grown and financially independent, and John is now single. He transfers ownership of the fully paid $50,000 policy to the Maryland SPCA, Inc. and receives a deduction for its cash value.
The example is only only an illustration of the benefits. In all cases, you should consult your adviser. The Maryland SPCA can provide detailed profiles tailored to your circumstances at no cost or obligation. We also offer a life insurance and retirement plans brochure.
Our legal name is Maryland SPCA, Inc. Our Federal tax identification number is 52-6001558.
For more information about life insurance or retirement account gifts, please contact the Development Office by email or phone at 410-235-8826, ext. 133.
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