Life Insurance
There are a few different options when it comes to making a gift to Tech using your life insurance policy. All of them allow you to make a significant contribution to Georgia Tech while offering different benefits to you. Please let us know if you are considering using a life insurance policy to make a gift to Georgia Tech. We strongly recommend that you discuss your interest with your estate attorney and/or financial advisor to find out if this gift is right for you.
Name the Georgia Tech Foundation or the Alexander-Tharpe Fund the beneficiary of a policy
- By naming the Foundation or the Fund as a primary beneficiary, you maintain ownership of the policy and will continue to have access to the policy's cash value.
- It's as simple as updating the beneficiary form with your insurance company.
- If your estate is subject to estate tax, it will receive a charitable estate-tax deduction for the amount of the policy's proceeds given to Tech. You do not receive tax benefits for this gift during your lifetime.
Name the Georgia Tech Foundation or the Alexander-Tharpe Fund the owner and beneficiary of a new policy
- You can receive a charitable income-tax deduction for the value of your policy by naming the Foundation or the Fund the owner and irrevocable beneficiary of the policy.
- If the policy is paid up, the value of the policy is its replacement cost.
- If the policy is partially paid up, the value is approximately its cash surrender value.
- After transferring ownership, any further premium payments made directly to the Foundation or the Fund are considered tax-deductible gifts, which can then be used to pay the policy premiums.
Please note: The federal estate tax is currently back in effect through the end of 2012. The top tax rate is now 35%, and the exclusion amount is $5,120,000 per person and $10,240,000 per married couple. Any exclusion amount not used by a spouse who dies after December 31, 2010, is portable and generally may be used by the surviving spouse. It is very important that you seek the advice of your estate-planning attorney to determine what changes, if any, need to be made to your existing estate plans.