The New York Times > Washington > The Treasury Department: Tax Proposed to Curb Investors From Cashing in on Deaths of Philanthropists

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The New York Times > Washington > The Treasury Department: Tax Proposed to Curb Investors From Cashing in on Deaths of Philanthropists: "Tax Proposed to Curb Investors From Cashing in on Deaths of Philanthropists
By STEPHANIE STROM
Published: February 9, 2005
The Treasury Department has proposed a 25 percent excise tax intended to curb a new fund-raising tool used by a growing number of charities with large and wealthy donor bases.
The new tax, part of the department's 2006 budget proposal, would hit investors who buy life insurance on major charitable donors and pay the premiums, in hope of profiting substantially from the death benefits in exchange for promising that a small part of the benefits will flow to the charities."