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!