Gifts of Life Insurance
How It Works
- You transfer ownership of a paid-up life insurance policy to the Cortland College Foundation.
- SUNY Cortland through the Cortland College Foundation elects to cash in the policy now or to hold the policy.
Benefits
- Make a gift using an asset that you and your family no longer need.
- Receive an income tax deduction.
- In some cases, you can use the cash value in your policy to fund a life-income gift, such as a deferred gift annuity.
Questions and Answers
How do I arrange a gift from my life insurance?
Simply contact your life insurance company and request a “Change of Beneficiary/Ownership” Form. Designate us as the new owner and beneficiary of your policy.
What are the tax implications of a gift of life insurance?
If you give your policy to us while you are still alive, you will receive an immediate income tax deduction for the current value of the policy. If you pay any future premiums to keep the policy active, these payments are also tax deductible. If you retain ownership of the policy, benefits payable to us at death can save federal and state estate taxes depending on the size of your estate and your state of domicile. Any death benefits passing to heirs will not be subject to income or inheritance taxes, but may be subject to federal and state estate taxes.
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