The Gift of a Lifetime
Have you ever thought of what mark you are going to leave on this world?
What’s your purpose and will it have been memorable?
Did you contribute in your life or did you just take?
It’s never too late to consider building a legacy that can be impactful in the lives of others. A gift of a lifetime just needs some planning you can do today. It’s not difficult to comprehend the outcome of such a gift because you determine its purpose. The gift becomes your legacy – a gift not everyone has such an opportunity.
The opportunity starts with your will. Is there a special charity in your heart? Do you want to make the contribution memorable and leave your mark on the world? Your estate will be divided as you had intended so, this is where you can use your existing financial resources to provide that gift of a lifetime. There are three simple planning strategies to consider in building your legacy
First, buy a life insurance policy on yourself as the life insured and the charity as the owner and beneficiary of the policy. Upon your death, the charity receives the death benefit in the policy as your gift. The impact to the charity is much larger than you could have done on your own. While you pay the annual premiums for the policy, you will receive a charitable tax receipt equal to the amount of the premium. Some policies have dividends payable annually which the charity would receive while you are still living.
Second, name the charity as a beneficiary in your existing life insurance policy. The death benefit is paid to the charity while your estate receives a charitable tax receipt equal to the death benefit paid upon your death. Your estate can use the charitable tax receipt to offset any other taxes payable to CRA on registered or non-registered assets of the estate.
Finally, donate an existing insurance policy to the charity. The change in ownership to the charity allows a charitable tax receipt to be issued at time of the gift, equal to the fair market value of the policy. Should you still pay the premiums for the policy then, a charitable tax receipt would equal the amount of the premiums paid annually.
So, simple planning can be impactful in the lives of others. Using life insurance as the gift of a lifetime can create your legacy to be memorable. Don’t let this opportunity slip by without talking with us.
We listen to what’s important to you and how you best want to be remembered.