The underlying assumption--that active donors are committed and lapsed
donors have changed their minds--is more a product of our own attitudes than a realistic understanding of how people behave.
T must allocate $10,000 of GST exemption to the original transfer, and C must in turn allocate $5,000 of a GST exemption to the lapsed
amount in excess of the 5 & 5 amount.
We regress the cash flows at t = n obtained if the option is not lapsed
on the cash flows received at t = n - 1 if the option is lapsed
through a classic least square regression.
Since certain regulatory approvals have not been accorded, the closing did not occur by December 31, 2009 and the SPA stands lapsed
in accordance with the terms, MCB Bank said.
He estimated that the lapsed
file could be "a couple million" names.
If those requirements are not met, however, policyholders have the ability to "catch up" and restore the life insurance coverage by paying back premiums with no interest, so long as the policy has not lapsed
and the accumulated cash value is greater than zero.
An interesting aspect of the German private health insurance system is that high lapse rates (exceeding expected lapse rates) may increase the short-term profit as reserves of lapsed
policies in most cases enlarge the annual gross surplus.
One such emerging risk relates to the reinstatement process, which is the process by which a lapsed
policy is reactivated and put back in the same position as it was before the lapse occurred.
These messages tend to alienate donors who might not even feel as though they are lapsed
and say to them, in effect, "What you're doing isn't enough." Many of these donors could have already made provisions for your organization in their wills or estates plans--the ultimate gift--and whether or not you're aware of these plans, expect you to treat them accordingly.
The regulation states, "where any portion of a trust remains in the trust after the release, exercise, or lapse of a [general] power of appointment over that portion of the trust...the value of the entire portion of the trust subject to the power that was released, exercised, or lapsed
will be treated as an addition to the trust." (This does not apply to special powers of appointment; see Temp.
First, the insurer might suffer high losses from lapsed
policies due to up-front investments for acquiring new business (Pinquet et al., 2011).