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The valuation rules for determining fair market value and basis of charitable gifts of typical life insurance policies are somewhat in transition due to Rev.
The valuation rules for determining fair market value and basis of charitable gifts of typical life insurance policies are somewhat in transition due to Rev. Rul. 2009-13 and the emergence of the life settlement market. However, for newly issued policies and paid-up policies the rules for determining fair market value are Use the first premium paid for fair market value of a paid up policy and replacement cost for the value of a newly-issued policy. Use the interpolated terminal reserve plus the unused part of the last premium for fair market value of a paid-up policy and the first premium paid for the value of a newly-issued policy. Use the interpolated terminal reserve plus the unused part of the last premium for fair market value of a newly-issued policy and the first premium paid for the value of a paid-up policy. Use the first premium paid for fair market value of a newly-issued policy and replacement cost for the value of a paid up policy. Use the replacement cost for the fair market value of a newly-issued policy and the interpolated terminal reserve plus the unused part of the last premium for fair market value of a paid-up policy
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