Life Insurance Overview
Charitable giving can be a rewarding experience by allowing you to both give and receive. To enjoy the benefits of charitable giving, you can utilize a variety of strategies.
Life insurance is the one asset almost everyone has. For the young parent with limited dollars, it is a way to protect the family against economic loss in the event of a parent's premature death. For the business owner, it may provide dollars to buy out a deceased partner's interest or compensate for the loss of a key manager. For older individuals, it provides the liquidity needed to settle an estate and pay taxes.
Life Insurance is also an excellent vehicle to use in some gifting strategies in order to "reimburse" beneficiaries for gifts given to a charity. Your gift to the Ottawa Regional Cancer Foundation will be wisely administered through our investment program, which will result in a stable source of income to the Cancer Foundation for years to come.
An Appropriate Strategy for You?
If this strategy sounds interesting to you, there are a variety of considerations. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance. Before implementing this strategy, it would be prudent to have the policy approved. In addition, you should seek professional advice from an attorney before establishing such a trust. In many cases, the wealth replacement trust is an appropriate way to preserve family wealth.
Gifts of Life Insurance:
Gifts of life insurance can be made in more than one way:
Make the Ottawa Regional Cancer Foundation the beneficiary of your existing policy.
If you simply designate the beneficiary of your existing life insurance policy to be the Ottawa Regional Cancer Foundation, your estate will receive a charitable tax receipt for the value of the death benefit.
This receipt can be used to offset tax payable on the final tax return.
Note: If the donation receipt exceeds the net income in the final tax return, it can be carried back to the previous year).
Make the Ottawa Regional Cancer Foundation the beneficiary and owner of a paid up policy.
You can designate the Ottawa Regional Cancer Foundation as the beneficiary and owner of the paid up life insurance policy. In this way, you will receive an immediate donation receipt for the cash surrender value to offset current income tax.
If the donation exceeds 75% of your net income for the year, you can carry the excess tax credit forward up to five years.
Name the Ottawa Regional Cancer Foundation as the owner & beneficiary on a policy with premiums still owing.
You will receive an immediate tax receipt for the cash surrender value and tax receipts for any ongoing premiums you make.
If you choose to purchase a policy with one lump sum payment, you will receive a one-time tax receipt for the entire amount.
As above, if the donation exceeds 75% of your net income for the year, you can carry the excess tax credit forward up to five years.
Other Ways to Give
There are many other ways that your gift to the Ottawa Regional Cancer Foundation can be structured to meet your philanthropic needs while maximizing tax savings and other benefits.
Gifts can be either immediate or deferred gifts or a combination of both.
To find the option that works best for your portfolio please contact the Ottawa Regional Cancer Foundation:
Director of Development
613.247.3527 ext. 263