ACES Office of Advancement

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Life Insurance

Income Tax Consequences

When the UIF is named as the beneficiary of a life insurance policy, there are no income tax deductions for the donor.  However, when a life insurance policy transfer names the UIF as the owner of the policy, the donor may be eligible for an income tax deduction depending on the type of policy and circumstances.

Estate Tax Consequences

Proceeds of a life insurance policy where UIF is the beneficiary or owner are excluded from the donor’s estate. Moreover, these gifts are not subject to the IRS three-year look-back period on lifetime gifts from the estate.

Making a Life Insurance Gift

The UIF Office of Gift Planning and Trust Services at 217-244-0473, or the College of ACES Office of Advancement at 217-333-9355, can provide you with information on gifting a life insurance policy.