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Description

Lis4cg analyzes in force policies and facilitates the issuance of new policies that meet a variety of objectives including trust and estate, business and philanthropy. Charitable life insurance is a financial transaction where the trustee or benefactor of a life insurance policy irrevocably assigns or designates their policy rights to a 501(c)(3) tax-exempt organization.

 

Maximize Return, Minimize Risk

Lis4cg provides fee based life insurance planning to family offices. Our singular focus is maximizing the performance of life insurance which we view as an alternative asset class. Through proprietary and nationally recognized insurance strategies, we help clients expand their choices and to realize benefits far exceeding what they previously thought possible.

 

Irrevocable Life Insurance Trust w/ Financed Premiums

It is Lis4cg’s opinion that a Federal and California state income tax charitable deduction should be allowable at the time the premiums are paid and the donor becomes liable to the third party lender as long as the ILIT is the owner of the policy and the charity is sole irrevocable beneficiary. The deduction should be limited to the actuarial determined premiums based on the initial face amount of the policy. The additional portion of the premiums due to the partial collateral given by the ILIT would not be deductible as that amount is an economic benefit received by the donor. Additionally, the interest payments made by the donor would not be deductible as that also gives rise to an economic benefit for the donor. Prospective donors and fiduciaries should seek the counsel of their legal and tax advisers, but it is Lis4cg’s position that an Irrevocable Life Insurance Trust combined with Financed Premiums can materially reduce the cost of deferred charitable gifts by as much as 50 percent.