Charitable Giving with Insurance Policies

Insurance Concepts

You can afford to donate a larger gift.You will receive a tax credit immediately.You will not diminish your estate value.

You can transfer the ownership of a paid-up Life insurance policy to the charity and make the charity

the beneficiary. For tax purposes, the value of your donation will be the Cash Value (less any outstanding loans) at the time of transfer.

You can also donate a partially paid life insurance policy and continue to pay the premiums. You will receive a tax receipt for every premium you subsequently pay.

And finally, you can purchase a new policy naming the charity as owner and beneficiary and receive a tax receipt for the premiums paid.

Another option that does not generate a tax receipt untilyour death, is to make the charity a beneficiary of your life insurance policy. This can result in significant tax savings on your final tax return since you are entitled to claim donations of up to 100% of your income in that year and the preceding year.

With proper planning, it is possible to disinherit CCRA (Revenue Canada) by donating to your favorite charity instead.

Taxes at Death with NO Planned Giving

Your Estate$150,000

CCRA$150,000

$ 3 0 0 ,0 0 0In com e in year o f d ea th

o f su rvivin g sp ou se

R R S P /R R IF A sse ts

Taxes at Death WITH Planned Giving

$300,000Life Ins.P o licy

$300,000Lef t to

C hildren

Inco m e o n death $300,000

T ax C redit($300,000)

C C R A Yo ur C hildren get

$ 3 0 0 ,0 0 0$ 0

$300,000R R S P /R R IF

Assets

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information on the website, please e-mail info@insuranceconcepts.ca

Charitable Giving with Insurance Policies

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