I am in a position to change the beneficiary on my $200k life insurance policy and will probably make the LSF the primary beneficiary on my policy.
We should put up some details on the donate section of the website explaining how to do this. :)
Other charities do this. Why shouldn't we? ???
Watch your back! :P
If you can do that, go for it. It's best to keep quiet about it though, because sometimes people do crazy things... for isntance murdering someone for $$.
Plus it will always come as a nice surprise to the scholarship fund when they get it, and you'd probably get your name on something big.
The LSF can be the beneficiary in any percentage on life insurance, pension plans, IRAs, and annuities. Some of the other gifting options rely on the 501c3 status of the beneficiary organization. I can write it up Mike.
Brian
On this note, what's the status of "death taxes"? The US Congress suposedly repealed this on the federal level, right? What about NH as a state? If this is a problem, one solution would be that if you are 95%+ certain that you're going to die soon, donate the $ to various people in smaller staggered increments. In turn, these beneficiaries donate it to the foundation, and BAM! you died penniless boo hoo :( :D
Quote from: FSPinNY on March 30, 2006, 11:40 PM NHFT
The LSF can be the beneficiary in any percentage on life insurance, pension plans, IRAs, and annuities. Some of the other gifting options rely on the 501c3 status of the beneficiary organization. I can write it up Mike.
Brian
Sounds great! :)
I hope I can get more time to work on the LSF soon...
Quote from: Scott Roth on March 30, 2006, 10:11 PM NHFT
Nice to see you back again, Mike. 8)
Thanks, Scott. It's nice to be back!
Quote from: aries on March 30, 2006, 04:05 PM NHFT
Watch your back! :P
If you can do that, go for it. It's best to keep quiet about it though, because sometimes people do crazy things... for isntance murdering someone for $$.
Plus it will always come as a nice surprise to the scholarship fund when they get it, and you'd probably get your name on something big.
What? ???
Quote from: Scott Roth on April 01, 2006, 07:00 PM NHFT
Someone is very paranoid here... ::)
Of course I am! I'm in the Free State Project, I'm nearly an anarcho-capitalist, how could I not be paranoid too? ;D
Quote from: FSPinNY on March 30, 2006, 11:40 PM NHFT
The LSF can be the beneficiary in any percentage on life insurance, pension plans, IRAs, and annuities. Some of the other gifting options rely on the 501c3 status of the beneficiary organization. I can write it up Mike.
Brian
The LSF will be the recipient of $100,000 of planned gifts through my life insurance policy within the next few days. This is a $13 per month expense for me to maintain. Sounds like a lot of bang for the buck.
All it requires to set up a planned gift is the LSF's EIN and mailing address. I hope to see your write-up of this soon. :) This definitely seems like a good fundraising strategy to pursue, even though some donors may choose to keep their planned gift a secret.
Quote from: Michael Fisher on April 14, 2006, 08:20 PM NHFT
The LSF will be the recipient of $100,000 of planned gifts through my life insurance policy within the next few days.
I hope you don't mean that LSF (or anyone else) will be collecting on your policy in the next few days! :o
Quote from: KBCraig on April 14, 2006, 10:32 PM NHFT
Quote from: Michael Fisher on April 14, 2006, 08:20 PM NHFT
The LSF will be the recipient of $100,000 of planned gifts through my life insurance policy within the next few days.
I hope you don't mean that LSF (or anyone else) will be collecting on your policy in the next few days! :o
LOL
Quote from: Michael Fisher on April 14, 2006, 08:20 PM NHFT
Quote from: FSPinNY on March 30, 2006, 11:40 PM NHFT
The LSF can be the beneficiary in any percentage on life insurance, pension plans, IRAs, and annuities. Some of the other gifting options rely on the 501c3 status of the beneficiary organization. I can write it up Mike.
Brian
The LSF will be the recipient of $100,000 of planned gifts through my life insurance policy within the next few days. This is a $13 per month expense for me to maintain. Sounds like a lot of bang for the buck.
All it requires to set up a planned gift is the LSF's EIN and mailing address. I hope to see your write-up of this soon. :) This definitely seems like a good fundraising strategy to pursue, even though some donors may choose to keep their planned gift a secret.
I'll get to work on it. That's a very nice gift Mike, thank you.
Just for fun, I ran this; invest $13 per month for the last 40 years in the S&P 500 - you'd have $113,307 on 3/31/06, with a total average annual return of 11.62%.
Brian
Mike, that's a really bad idea.
Insurence is suppost to insure against the unexected. It's suppost to insure against loss that the benificiery would have.
I suppost it could be argued that the LSF would loose an asset if you died (nobody advertising for it anymore, etc.) but frankly it's not an insurable interest.
You'd be better off, not having insurence now that nobody's depending on your life.
Take the money and invest all that money you're currently putting in life insurence now, nad invest that in the LSF endowment fund now.
If you have a cash value policy, you're getting ripped off anyway. (If you want me to elaborate say so.) Cash it out. And invest that in the LSF endowment fund too.
If you don't have anybody depending on you for their livelyhood. You have no need for life insurence. You'd be better off getting rid of it, and using your monthly premiums in better ways.
Tracy
Quote from: tracysaboe on April 15, 2006, 01:55 AM NHFT
If you have a cash value policy, you're getting ripped off anyway. (If you want me to elaborate say so.) Cash it out. And invest that in the LSF endowment fund too.
I'm wrong often, but I'm not
that stupid. The ~2% "ROI" of whole life insurance is absurd and I feel bad for anyone who falls for it.
Quote from: Michael Fisher on April 15, 2006, 10:23 AM NHFT
Quote from: tracysaboe on April 15, 2006, 01:55 AM NHFT
If you have a cash value policy, you're getting ripped off anyway. (If you want me to elaborate say so.) Cash it out. And invest that in the LSF endowment fund too.
I'm wrong often, but I'm not that stupid. The ~2% "ROI" of whole life insurance is absurd and I feel bad for anyone who falls for it.
Well that's good. :) It's amazing the number of people who DO fall for it though. I still find new clients (through Primerica) that have cash value policies.
Anyway, you should seriously think about simply donating the $13/month to the LSF and dropping the term policy al-together vs keeping it and naming the LSF the benificiary. Unless you seriously believe that the LSF would fall about w/o you.
Tracy
Quote from: tracysaboe on April 15, 2006, 11:55 PM NHFT
Unless you seriously believe that the LSF would fall about w/o you.
Tracy
I think he means the Life Insurance mostly as a gift to the LSF and not to make up for his absence, should he.....you know.....assume room temperature.
If that's the case then, he's not really using his life insurence as .. well, life insurence. He's using it as a savings account to give to somebody else after he dies.
There are better financial vehicles that are actually designed to do those sorts of things.
Some insurence companies, would notice the lack of insurable interest and worry about fraud and cancle the policy.
He would be much better off giving the $13/month directly to the LSF endowment fund. Then in 40 years or so the LSF would have gobs of money, and he could potentially still be alive.
Seriously, if that's what you're using it for. These days people live to 100 or so and it's not unheard of. Average life expectancy is around 80 years old these days, and w/ NH being a healthier state it's even better and will continue to improve. You're going to look back 60 years from now and say "Man, what a waist." Expecially considering most term policies are 30 year term and step up a little every 5 years after that.
My philosophy is, if you don't need life insurence -- you shouldn't have it. If you've got a wife, or a family, or a business, or whatever that would be financially injured by your demise. Then that's a need. But a person that's fairly automomous, doesn't really have a need for it.
Ultimately do what you want. It's your money. But I really think that if Mike thinks this through, he'll come to a simular conclusion.
Tracy
Life expectancy statistics are as meaningless as the CPI.
I'm not going to cancel my life insurance. Thanks for the advice though.
I do not have any faith in dollar-denominated investments and will avoid them whenever possible. ;)
I could encircle Mike's waist with my fingers.
Not that I would, though
I don't have any life insurance to donate. My ex-wife wanted to up to payout a month after she kicked me out of the house. I cancelled that puppy within the hour.
Mike is a nicer guy than me. I have too many people that would prefer me gone and the LSFund enhanced. :)
I don't prefer you gone.
Now that I doubt. I can't image him chubby :o
Better get your book out again Tracy. Insurable interest is not an issue here. Your own life is of the highest insurable interest, you can insure others in your life as well, such as your spouse, children, parent, or business partner. I cannot buy insurance on someone that I do not know, or someone that I have no insurable interst in, like a celebrity. Nor can I buy property insurance on the Wonderland Ranch!
Beneficiaries are not considered in insurable interest. A policy owner has the right to choose anyone or any organization as beneficiary.
Yeah, I was going to point that out too, but I also think that the LSF would benefit more by the $13 dollars a month or whatever that premium is, than the benefit payout. Mike is correct that we should promote that option, though.
Cathleen
Quote. . .but I also think that the LSF would benefit more by the $13 dollars a month or whatever that premium is, than the benefit payout. . . .
That's all I'm trying to say.
So how would Mike's own life be hit financailly if he dies? He doesn't need it. He's dead. (I mean, unless he's got a lot of lenders that he owes money to, but I seriously doubt that being the type of person Mike is.) It's others who depend on your life for your resourcees and income the reason that you buy death insurence (that's what it used to be called, and it's a far more honest term.) for. In the event that you die, the people in your life that depend on you are going to be taken care of.
Anyway,
Tracy
Tracy....Why do I think you work for Primamerica! ;D
Mike, think it super that you have made LSF a benificary! ;D
Maybe because I mentioned it a few posts back? ^-^
Seriously, I'm still technically a producure for them. I keep my license up, just because someday I might want to do it again, and don't feel like needing to restudy all that useless crap they have on the tests.
But anyway,
Tracy
BTW, my life insurance gift has a few conditions on it that I will only mention here. They're pretty straightforward:
-The money must ONLY be used to further the LSF's current mission ("...to significantly increase the educational opportunities available to children ages 5-18 by acquiring charitable donations and channeling those funds directly to families in New Hampshire for non-public education.").
-All of the money must go to the Endowment Fund.
-The interest from the money, if removed from the Endowment Fund, can only go directly toward scholarships (the Scholarship Fund).
-All of the money remaining must be immediately withdrawn and given to my Father, Mother, or Brother if the LSF applies for and receives any of the following at any time:
-- 501(c)(3) status;
-- any other tax-deductible government status determination; or
-- any source of government funding, grants, or loans.
Thanks, Mike. Nice to see you've thought through the permutations.
Kevin
Quote from: KBCraig on May 08, 2006, 03:37 AM NHFT
Thanks, Mike. Nice to see you've thought through the permutations.
Kevin
It's good to be givin' while you're livin' so you're knowin' where it's goin'.
But with planned giving, it's good to set conditions so the money is not used to do the exact opposite of what you intend.
Do you have that set up as an official trust? Or explained thouroully in the benificiary part of the insurence contract? Or in your Will?
Simply posting the conditions here won't be legally binding. (Of course, I'm sure you know that -- not that all agreements need to be legal, but anyway.)
I think it's good that you're setting up these conoitions now, instead of waiting till you're no longer on this plain.
Tracy
Quote from: tracysaboe on May 09, 2006, 04:17 AM NHFT
Do you have that set up as an official trust? Or explained thouroully in the benificiary part of the insurence contract? Or in your Will?
Simply posting the conditions here won't be legally binding. (Of course, I'm sure you know that -- not that all agreements need to be legal, but anyway.)
I think it's good that you're setting up these conoitions now, instead of waiting till you're no longer on this plain.
Tracy
No.