Under certain circumstances, a life insurance policy may “replace” for heirs the value of a gift made to St. Lawrence. The proceeds from an income tax charitable deduction, often combined with increased income as the result of a gift-with-income plan, are used to pay premiums or make a one-time payment on a life insurance policy at least equal in value to the amount of the gift to St. Lawrence. A child or other heirs are named beneficiaries of the policy. In this way the donor “replaces” the “wealth” that was gifted to St. Lawrence. Placing this insurance policy into a trust (a so-called wealth replacement trust) preserves the value for your heirs, avoids probate and transfers the value free of federal estate tax and state inheritance tax.