Are you carrying a life insurance policy that is no longer needed? The policy may have been taken out many years ago to assure adequate resources during periods of child-raising, or for specific purposes that may no longer be a priority. In those instances, naming and donating the policy to UAlbany can provide an immediate charitable tax deduction for the policy’s cash surrender value or the cost basis, whichever is less.
Alternately, UAlbany can simply be named a primary or contingent beneficiary of the policy. While that does not offer an immediate income tax deduction, it may reduce estate taxes in some instances. The proceeds of the policy will be used in accordance with your wishes and may establish a permanent fund in your name for specific educational purposes.
Example: Mr. Green’s children are all adults and are quite self-sufficient and financially comfortable, as is he and his wife. He has a $50,000 paid-up policy that is no longer needed to meet its original purpose. By naming UAlbany and donating the policy, he receives a charitable tax deduction and he has directed that the proceeds eventually establish a Green Family Scholarship at UAlbany.