Build a Legacy Program
A charitable request and the use of a dedicated life insurance plan continues to be one of the simplest and most accessible means of planning a gift. PICS has decided to have experienced team to assist with all aspects of this combined with effective Legacy Will Planning. Providing first for the well-being of your family and loved ones, you can also bequeath an amount or percentage of your assets to a Legacy fund with PICS. As important changes occur in your life, you can always modify your will according to your situation. Designating PICS as contingent beneficiary can mean reduced taxes and your estate assists very appreciative PICS family.When reviewing the journey of our lives, we often look for lasting meaning. We may wonder: “How will I be remembered?” Planning a Gift in a Will that will help future generations can bring a sense of peace and joy to these contemplation’s.
Planned giving is a gesture that comes from the heart. However, it is important to be informed about the tax regulations that exist in BC. PICS has arranged to ensure that you have the advice and expertise to structure your planned gift. The More structured the greater its impact.
You Have Gifting Options
Some of these options are deferred and will be received by the PICS after your lifetime. Some will go to work during your lifetime. All deliver their own individual kinds of tax advantages and these can be very powerful tools to save money in your Estate or for your present needs.
A Few of the Most Popular Ways to Build a Giving Legacy
PICS offers a variety of giving options. Whether it’s setting up an endowment fund, contributing to an existing fund, or making a legacy gift, we work with you to meet your financial needs and your personal philanthropic goals.
By naming PICS as the Owner of your life insurance policy, you can provide a sizable future gift to the Society at an affordable current cost, without reducing what you give to family and friends through your estate. In some cases it makes sense to designate PICS as the irrevocable beneficiary or owner and beneficiary of your life insurance policy, we will be able to provide you with an official receipt for income tax purposes for the amount of premium you pay each year.
Name PICS as the beneficiary of your Registered Retirement Savings Plan, Registered Retirement Income Fund or Tax Free Savings Account and make a significant donation, while saving your Estate from paying probate tax on the proceeds.
This is an incredibly positive and empowering message YOU can send when you or a key family person passes away. The same event that creates the loss creates a life-giving event that passes tax-free to the community. This is a very empowering strategy for everyone who is determined to fulfil your dreams by leaving a legacy
For more information phone or email our Legacy Account Advisors Parminder Thind Phone 604.828.7213 Email firstname.lastname@example.org Ralph Fege CLU, CHFC, CHS Phone 778.389.1640 Email email@example.com
FAQ – When donating an insurance plan to PICS
How do I donate a newly issued life insurance policy to a charity and get a tax receipt for the premiums paid?
Donating an existing life insurance policy to a charity can benefit PICS and provide significant tax benefits to the donor in the form of a charitable donation tax credit (for individuals).
Generally, premiums paid after transferring a policy to a charity qualify for a charitable donation credit. The donor may also get a credit for the value of the policy if an existing policy is donated. Premiums paid prior to transferring a policy will not necessarily qualify as charitable donations. This rule sometimes raises a “timing” issue where the individual is listed as the owner/insured on the application and pays the premiums to bring the policy in force prior to transferring ownership of the policy to the charity, even though the intention was to gift the policy to the charity immediately.
One way to work through this issue may be to have the policy issued to the charity (as opposed to the individual) even if the individual originally applied for the policy. This way the charity “owns” the policy at the time of delivery while the payment of the premium is made by the donor and receipted that way.
Normally the signature of the charity as owner and other requirements are signed on delivery.
Where the request is not made prior to issuing the policy, a policy can be issued to the insured with the first month’s premium being paid to put the policy in force. Immediately after the policy is in force, the policy can be transferred to the charity and a lump sum (or regular monthly premium) premium payment can be made. Generally, if the policy is transferred immediately after being put in force in this manner, there should be no tax consequences to transferring the policy; however, each policy should be reviewed prior to implementing this strategy to ensure that no unintended tax consequences result. The first month’s premium payment would not be eligible for a charitable donation credit unless the first month’s premium was considered to be the fair market value of the existing policy transferred to the charity.
There is a deeming provision in the Income Tax Act for existing or newly issued policies donated to a charity. The deeming provision states that the receipted amount would be the lesser of the FMV otherwise determined and the ACB of the policy (less any advantage received by the donor). The ACB at the time of the transfer of a policy is obtainable from the insurer and would include the amount of the first premium that is considered a “premium” as defined in the Income Tax Act. For the purposes of calculating the ACB, the net cost of pure insurance is deducted at the end of the calendar year. There may be some question whether the FMV could be less than the ACB for a newly issued policy.
Reviewed: August 2018