There are various ways in which a donor can
contribute life insurance to Alzheimer
Society Niagara Foundation. Generally the gifts fall into the following
categories:
1.
The donor irrevocably transfers ownership of
a paid-up policy to the Alzheimer
Society Niagara Foundation, and the Society is named
beneficiary.
2.
The donor irrevocably transfers ownership to the
charity of a policy where they continue to make
payments either annually or in one lump sum, and the
Alzheimer
Society Niagara Foundation
is named beneficiary.
3.
The donor irrevocably transfers ownership of
a new policy. The donor pays the
premiums and the charity is named as owner
and beneficiary.
4.
The donor names the Society as the
beneficiary of a policy.
5.
The donor names their estate as the beneficiary of
the policy and includes a gift in the Will equal to
the proceeds of the policy.
The tax treatment of the life insurance gifts
itemized above is as follows:
1.
Donors receive a tax receipt for any cash surrender
value of a paid up policy.
2.
Donors receive a tax receipt for any cash surrender
value of a partially paid up policy and tax receipts
for ongoing premium payments (either annual or lump
sum).
3.
Donors receive a tax receipt for premiums paid.
4.
The donor’s estate will receive a tax receipt for
the proceeds of the policy; the gift is not subject
to estate probate fees.
5.
The donor’s estate will receive a tax receipt for
the amount equal to the proceeds of the policy; the
gift is subject to estate probate fees.
Advantages:
You
can create a sizeable future gift
Tax
relief in the form of charitable tax receipts
for cash value and/or premiums paid (depends on
policy structure and ownership)
It
doesn’t reduce the value of your estate for your
heirs
Passes outside the estate settlement process—the
proceeds are paid directly to the Alzheimer
Society Niagara Foundation, thereby not subject to
probate and estate fees
It’s
easy to do with help from a financial planner
You
can choose from a full range of products, price
ranges, and payment periods to suit your
circumstances