What are the benefits of using life settlements as part of a charitable gifting program?
- Making a donation to his/her favorite philanthropic organization without depleting cash reserves or losing income-producing assets.
- Getting a tax deduction for the fair market value (selling price) of the life insurance instead of only cash surrender value.
- Being able to see their donation put to use during their lifetime, rather than after their death if the organization did not utilize a life settlement.
- Eliminating the requirement of continued premium payment on the policy.
- Removing a taxable asset from their estate if the policy was individually held.
- Revive a donation from a donor who may not have otherwise been in a position to contribute.
- Collect a lump sum of cash today for capital projects, instead of having to wait for the insured’s death to collect the proceeds.
- Not having the financial burden of paying premium payments to keep the policy in force.
- Providing a valuable option to the donor that furthers their tax and estate planning objective and invites the opportunity for future/additional gifts.
- Accommodate an owner who wishes to see the policy’s hidden value tapped while he/she is still living.
- Develop stronger relationships with donors through more creative planned giving programs.
- Improve annual budget forecasting ability.