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Private Family Foundations and Life InsurancePrivate Family Foundations and Life Insurance

Enhance the impact of giving via an oft-ignored tool

Vernon W. Holleman, President

December 18, 2012

20 Min Read
Private Family Foundations and Life Insurance

Life insurance has tax advantages. Private family foundations (PFFs) have tax advantages. As an old television commercial used to say, “Peanut butter and chocolate taste great on their own … but when combined … these two great tastes, taste great together!” That formula, I’d venture to say, worked great for the H.B. Reese Candy Company. So, I now ask all those Reese’s Peanut Butter Cup lovers out there: Can life insurance and PFFs work together to share a similar outcome?

Understandably, having a sweet tooth alone doesn’t qualify you to answer the question posed. Some advisors may view the use of life insurance, in terms of PFFs, as creating redundancy, given that a PFF’s assets grow, by and large, tax-deferred. But, there are a number ...

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About the Author

Vernon W. Holleman

President

http://www.hollemanco.com/

Vernon W. Holleman is the President of The Holleman Companies. He joined the firm in 1994. The firm is a member firm of M Financial Group, the nation's most successful insurance buying consortium. He is published with regularity in both industry (e.g. National Underwriting) and trade magazines and often speaks on the subject and importance of succession planning. He served as President of the District of Columbia Association of Insurance and Financial Advisors (DCAIFA) from 2003-2004 and is a member of the DC Estate Planning Council. Vernon hosts a series of Podcast interviews with business owners, e.g. Austin and Knight Kiplinger, on the topic of succession planning called the Holleman Business Succession Forum, which can be found on the firm's website (hollemanco.com) or through iTunes.

Vernon is a 1989 graduate of St. Albans School in Washington, D.C., and a 1993 graduate of the University of Denver where he received a B.A. in both Political Science and Public Policy. He is the Immediate Past President of the Downtown D.C. Kiwanis Club and served on the Board of Aidan Montessori School and the MedStar Research Institute Board, the research center of MedStar Health. He is Chair of the Planned Giving Committee (PGC) of The Washington National Cathedral and serves on the PGC at both National Cathedral School and St. Albans School, where he also serves on the Development Committee. He is also a Trustee of the Federal City Council and on its Executive Committee.

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