Posted by soapymac on June 09, 2000 at 12:06:51:
may put my reply in the wheelbarrow that’s going to the compost pile, but…
generally speaking, the charity SHOULD have the expertise to be able to service the note (or let a bank do it for them.)
The other matter is that when you make a donation, are you doing it for the love of the organization and you want to support it…or…are you doing it to be a good corporate citizen and looking for a tax benefit also?
When I was in the insurance industry some time back, there were individuals who wanted to give money to a charity at their death. The policy was written on their life, funded by them, with THE CHARITY AS OWNER. Their premium payments were then considered as a charitable contribution…hence, deductible.
How this would apply in your instance? Check with your solicitor and your accountant, but I believe if you took THE VALUE of those note PAYMENTS and purchased a life insurance policy using those payments as the premium amount, you may have the best of both worlds…control of the note, a deduction for taxes, and a stepped-up amount of money for the charity at your death.
Nice idea, if you are in a position to do it.
Cordially,
Roy MacLean
“soapymac”