Phoenix Touts Philanthropy As Financial-Planning Strategy.
The "2000 Phoenix Wealth Management Survey" found that more than 80% of high-net-worth people feel an obligation to give back to their communities. Many are a new breed of wealthy young entrepreneurs and professionals concerned about environmental and social issues, the company said. More than 90% of those surveyed said they annually contribute to charity, and two-thirds volunteer their time. Annual charitable contributions range from $5,000 to $7,000 for those with a net worth of $1 million to $3 million, and $10,000 to $15,000 for those with more than $3 million.
Charitable contributions can be income-tax deductible in the year they are made, and they can reduce 'estate taxes. Phoenix and its advisers suggest charitable lead trusts, charitable remainder trusts or life insurance.
In a lead trust, contributed assets are placed in a trust, which pays income to one or more charitable organizations for a stipulated amount of time. At the expiration of the term, the assets remaining in the trust pass to the trust beneficiaries, usually the donor's children or other heirs.
In a remainder trust, the contribution goes to an irrevocable trust and the donor retains either an annuity interest, in which the percent is determined at the creation of the trust, or a unitrust interest, in which the payout is calculated annually. The donor retains the income interest for life or a specified period. At the end of the trust term, or upon the donor's death, the remaining property is paid to designated charities.
A gift of life insurance to charity can be as simple as naming the charity as a beneficiary or as the owner of the policy. More sophisticated techniques also can be used with life insurance, according to Phoenix, which provides wealth-management strategies through insurance, investment management and trust services.
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|Title Annotation:||Phoenix Home Life Mutual Insurance Co. survey|
|Comment:||Phoenix Touts Philanthropy As Financial-Planning Strategy.(Phoenix Home Life Mutual Insurance Co. survey)|
|Article Type:||Brief Article|
|Date:||May 1, 2001|
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