Many people purchase life insurance policies for themselves or a loved one.
Over time, these policies may lose some of their value to you as your personal assets grow or your family members acquire assets of their own. Transferring ownership of a life insurance policy may be an especially attractive way of making a planned gift to American University. If you irrevocably assign all incidents of ownership in a life insurance policy to American University, you will receive an income tax deduction equal to the cash surrender value of the policy. You may wish to contact your insurance company for additional information on the cash surrender value and the form necessary to change ownership of your policy. An irrevocable assignment of your policy as described above may remove life insurance proceeds from your estate and reduce federal estate tax liability.