Gifts of Life Insurance
Last Updated (Friday, 27 March 2009 20:30) Written by Administrator Tuesday, 17 March 2009 20:56
If you are holding a life insurance policy that is no longer needed for its original purpose, you may be able to turn it into a valuable charitable gift.
Alternatively, purchasing a new policy to create an extraordinary gift later may be surprisingly affordable. Call us for many innovative tax saving ideas for using life insurance to create support for the charities and causes important to you.
Here are just a couple of the options available:
Option A
Purchase a new life insurance policy, or transfer ownership of an existing policy, making Edmonton Community Foundation both owner and beneficiary of the insurance.
Charitable tax receipts will be provided for the annual premium payments made, and, in the case of existing policies, the fair market value of the policy at the time of the transfer of ownership.
Arrange to pay the annual premiums for the insurance policy directly to the insurer or to the Foundation. Either way, a charitable tax receipt will be issued for the full value of the annual insurance premium payments made.
Option B
Name the Foundation as the beneficiary of a life insurance policy for which you remain the owner. The insurance proceeds will be paid tax-free directly to the Foundation. A charitable tax receipt will be issued for the insurance proceeds paid and may be used to reduce taxes in the year of death, or perhaps the prior year.
Call us for other life insurance ideas.
Getting Started
Talk to the Foundation and your professional advisor about your wishes. We will help you determine how your gift will support the charities and causes important to you.
