Tyler Junior College

Bequests and Gifts of Life Insurance

Bequests

The provisions in your will for making a gift to the Tyler Junior College Foundation will depend upon the type of gift and your own circumstances. The following are types of sample language that you and your attorney might find helpful when making a provision for TJC.

The Unrestricted Gift

I give to the Tyler Junior College Foundation at Tyler, Texas, the sum of $_________ (or _____percent of my estate; or the property described herein) for its general purposes.

Restricted Gift

I give to the Tyler Junior College Foundation at Tyler, Texas, the sum of $_________ (or _____percent of my estate; or the property described herein) for the use and benefit of its (i.e., School of Nursing and Health Sciences, etc.)

OR

I give to the Tyler Junior College Foundation at Tyler, Texas, the sum of $_________ (or _____percent of my estate; or the property described herein) to be used to endow the (i.e., John and Mary Smith Scholarship Fund, etc.). Income from said fund, as determined by applicable Foundation policy, shall provide (i.e., scholarships for students from the state of Texas, seeking an Associate of Arts Degree with an emphasis in music who demonstrate financial need, etc.).

Residuary

All the rest, residue, and remainder of my estate, both real and personal, I give to the Tyler Junior College Foundation at Tyler, Texas, for its general purposes (or describe the specific purpose, if desired).

Contingency Gift

I devise and bequeath the residue of the property owned by me at my death, real and personal, and wherever situate, to my husband (or wife), ______________, if he (or she) survives me. If my husband (or wife) does not survive me, I devise and bequeath my residuary estate to the Tyler Junior College Foundation at Tyler, Texas, for its general purposes (or describe the specific purpose, if desired).

Gifts of Life Insurance

Naming the Tyler Junior College Foundation as owner and beneficiary of a paid-up life insurance policy entitles you to a deduction equal to your cost basis in the policy, or its replacement cost, whichever is less. A similar gift with a policy that is not fully paid-up provides you with a tax deduction approximately equal to the policy's cash surrender value. Life insurance policies which are at least 50 percent paid up with surrender values of at least $2,000 make the most appropriate gifts.

Gift Guidelines (Recommendations) for Existing Insurance Policies

  1. Transfer of an existing policy should be absolute, with full ownership vested in the Tyler Junior College Foundation.
  2. The Foundation reserves the right to surrender the policy if it so desires.
  3. The policy should have a net cash value with no outstanding loans.
  4. The Foundation should be provided with a summary of the policy, including the donor's cost basis and current cash surrender value.
  5. When applicable, the donor should agree to contribute, on an annual basis, the amount necessary to maintain the policy in force.

New Insurance Policies

  1. All gifts of new insurance must be with an insurance company rated A or better, with the A.M. Best Company.
  2. The Foundation requests that all proposals for gifts of insurance be submitted to the Foundation prior to making application for the policy.
  3. Normally, the Foundation will not accept any gift of a life insurance policy with a premium payment period of over 10 years.
  4. Annual donors to the Foundation will be requested to continue their annual support in either cash or marketable property in addition to a gift of life insurance.
  5. The Foundation will not accept any insurance policy where the intent of the donor is for the Foundation to pay future premium payments through policy loans.
  6. The Foundation should be provided with a letter of understanding concerning any policy for which premiums are calculated on the basis of variable interest and mortality assumptions.