The Life Income Fund
The Life Income Fund is a “pooled income fund” as defined in Section 642 (c) (5) of the Internal Revenue Code. The Fund was established to hold gifts whose income is provided to one or more beneficiaries during their lifetime, and whose principal (known as the remainder interest) passes to IPC and/or related organizations thereafter.
A gift to the Fund creates immediate tax savings to the donor and provides lifetime income to the beneficiaries. Afterwards, the principal is transferred to IPC and/or related organizations for the uses specified by the donor. The Pooled Income Fund is particularly attractive for persons with appreciated securities paying little or no income. Donating these securities to the Life Income Fund avoids capital gains tax, creates an immediate tax deduction, increases income for life, and then provides permanent support to IPC.
The assets of the Fund are invested wholly in fixed income, and the income (less trustee fees) is distributed to the beneficiaries quarterly. During 2015 both beneficiaries passed away and the remainder interests were distributed to the covenant fund totaling $153,212. As of December 31, 2015, the asset balance in the Fund was $0.