Gifts of Life Insurance

Renewal Commisions

The College will accept a gift of renewal commissions. Because of The American College's unique relationship with the insurance industry, gifts of renewal commissions are encouraged.

At a life insurance agent's death, the vested renewal commissions are subject to multiple tax liabilities, present liquidity and valuation problems, and are difficult and expensive for the descendant’s personal representative to administer. By bequeathing renewal commissions to The American College the problems are greatly mitigated inasmuch as the administrative burden will pass to the College and the tax and valuation issues will disappear.

The asset is subject to income and estate tax. In addition, because valuation is an estimate only, and the commissions may later reduce in size, it is possible that estate tax may be paid on a much higher valuation than what is actually received.

For a thorough review of this subject, please obtain and read "Charitable Bequests of Life Insurance Renewal Commissions" by Melvyn Jay Huber, Esq., available by calling The College at (610) 526-1425.

For more information

Email us, complete the personal illustration form, or call us at 610-526-1425 so that we can assist you through every step of the process.