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I am the tax attorney that developed the "Charitable IRA", commonly referred to as the CHIRA TM concept approved in PLR 200741016 after several years in review with the IRS. In May of 2008, I received correspondence from the NY DOI (search 200741016, New York, Insurable Interest). A patent application was filed for this in 2005 and this can be found at the USPTO website searching for Delaney as inventor.
The NY DOI correspondence indicates that life/SPIA arbitrages will fail for lack of insurable interest.
Can you point me to this please? I didn't read that at all. Just for the record, I've never seen an "arbitrage" case where the math worked, but I've also never heard the "lack of insurable interest" argument and don't see how that's applicable.
Re: CHIRA - wouldn't a similar structure loan work even more easily if the donation came out of liquid assets as opposed to an IRA?