The Gift of Life Insurance to Parkinson Canada

When you think of donating to a charity such as Parkinson Canada, have you considered how you might help both you and the charity at the same time? Life insurance is one of the often overlooked ways of donating to a charity.

Donating life insurance can be an excellent way to transform affordable premium payments into a substantial future donation. When you name Parkinson Canada as a beneficiary and/or owner of a life insurance policy, you can benefit from tax savings in your lifetime or tax savings for your estate. More importantly, you will provide a legacy gift that could transform the lives of people living with Parkinson’s disease. A gift of insurance can be a very cost-effective way to donate because it enables you to make a substantial gift at little or no cost, without touching your other assets.

There are usually two ways to donate life insurance to a charity:

  1. Tax Savings in Your Lifetime: When you designate Parkinson Canada as the owner and beneficiary of a life insurance policy, you will receive an annual charitable tax receipt for the insurance premiums that you pay. This charitable tax receipt can then be applied as a tax credit to your annual tax return.
  2. Tax Savings to Your Estate: When you remain the owner of a life insurance policy and you designate Parkinson Canada as the beneficiary of the policy, your estate will receive a charitable tax receipt which can be used to reduce the taxes on your final tax return, and in some cases, the previous return. This also means that more of your assets can be left to your loved ones thanks to the tax credits your estate will receive.

A donation of a life insurance policy can produce a “win-win” situation for you and your charity of choice. It can provide tax savings directly to you or to your estate as well as maximizing the impact of your philanthropy. Still, you need to take the tax consequences into consideration. When thinking of donating a life insurance policy to Parkinson Canada, you should seek expert advice from a tax advisor, financial planner or lawyer.

For more information on leaving a Planned Gift to Parkinson Canada, please contact Sue Rosenblat, Manager, Major and Planned Giving, by phone at 1-800-565-3000 ext. 3386 or via email at plannedgiving@parkinson.ca.

comments