We have been approached by someone with s Life settlement insurance policy. The premiums, which will be paid currently, we have been told by our auditors, are an administrative expense in the current year. When the policies are sold in two years, we have been informed that this is UBIT transaction and taxable. This appears to be a mismatch between revenue and expenses recognition. Can these life settlement policies be considered as investments? Can anyone provide me insight as to the accounting treatment for this new and popular concept to raise money? Jeff Young CFO Diabetes Research Institute Foundation 1-800-321-3437