Many people have life insurance policies that they no longer need for their own or their family¿s security. For example, you may have purchased a policy to cover the cost of a mortgage that has since been paid off. You may irrevocably name Gettysburg College owner and beneficiary of your paid-up life insurance policy, or simply designate the College as beneficiary of a policy you own.
Example:
A 50-year-old donor irrevocably assigns all incidents of ownership of a $100,000 life insurance policy to Gettysburg College.
- Immediate benefit: Donor qualifies for an income tax deduction, typically equal to the cost basis of the policy or the fair market value of the contract, whichever is less.
- Future gift: The College receives the death benefit of the policy.
Planning Tip:
If you prefer to maintain control of your policy, naming Gettysburg College as the beneficiary is a way to make a generous future provision. Keep in mind that there is no income tax deduction for such a designation.
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