Wealth Replacement Strategy

Whether you'd consider yourself someone with a high net worth or a high earner who's not necessarily rich, there could come a time when you'd like to make a special philanthropic gift - but, you hesitate because you also may not want to tap assets you'd like to pass on eventually to your children or grandchildren....

Is there a solution?

You betcha!

With a 'wealth replacement strategy' you could make the philanthropic gift you wish to make -and then use the tax savings derived from the gift to fund the cost of premiums on a life insurance policy acquired by an irrevocable life insurance trust that you would set up concurrently with the gift. This trust would have your intended heirs (children, grandchildren) as the named beneficiaries. At your death, the death benefit from the life insurance would likely be equivalent to the value of the original assets you gave as a philanthropic gift. And, the cost of the insurance premiums likely would be covered by the value of the federal income tax charitable contribution deduction.

This strategy ends up allowing you to benefit BOTH your alma mater (or other favorite charity) AND your family. It's a terrific win-win opportunity. And, it may be just right for you!

Wondering...

So, when donors makes gifts to charitable causes in the Caribbean or in Central America - or, to the University of San Paulo in Brazil, for example, are these folks making philantropic gifts? Just wondering...

Preserving Our Natural Resources - A Unique Opportunity for Philanthropy

Been working on a project recently involving 'stewardship of the natural world' and, can't help but see the unique opportunities available in environmental issues for those who are philanthropically inclined to make a real difference that can last for generations.

We - especially we in America - have long held the belief that our natural resources are limitless - and, our consumption over the years has reflected this mindset. Even as other in the world have begun using restraint, we've been reticent to do. And, our resources in America show the scars of our living large. The truth is that the notion of an "American Way of Life" immutable to the reality that we all share one planet and its resources is quite at odds with the 'Hot Flat & Crowded World' portrayed by Thomas Friedman.

In a letter he wrote in 1787 to his friend, Thomas Jefferson, James Madison pointed out, "Nature has favored our country." and, who wouldn't agree with his assessment. Perhaps, it's time for to honor Mr. Madison's legacy by challenging ourselves to return the favor. Imagine all the people in all our communities across the country embracing the idea of changing behaviors and adopting new - good - habits that can help preserve the resources with which Nature has favored us.

And, as for the role of philanthropy? Well, there are opportunities at your alma mater - with charitable organizations in your community - and through local and state government initiatives for private philanthropic funds to seed new initiatives, support large scale recycling efforts, figure out ways to cut consumption of electricity, reduce water waste, and move about without always using cars and other personal vehicles. It's not just Carlos Santana that believes "This can't go on... We got to change our ways." Indeed, there are ways all of us can take on this work - as donors and as volunteers. It's time. You know, Victor Hugo hit the mark when he said (in French), 'Nothing's more powerful than an idea whose time has come!' And, the time certainly has come to act -to give money, give time, give new habits a try.