Leaving a Gift through Life Insurance

Many people discover that life insurance provides an affordable way to make a significant gift to Shepherds of Good Hope Foundation.

 

By giving through life insurance you can:

  • Make a substantial charitable donation for a comparatively small premium
  • Become a major benefactor right now, rather than waiting years to make your gift from accumulated assets
  • Gain tax benefits and guarantee the value of your gift will not be reduced by taxes, probate or administrative costs
  • Make a significant gift of funds that are not considered independent of your estate, and therefore cannot be challenged
  • Keep your gift private and confidential.

 

There are many options for making a gift of like insurance.  Some, like the first three listed below can provide for a generous future gift while offering immediate tax relief.  The method you choose will depend on your preferences and circumstances.

 

Transfer ownership of an existing, fully-paid policy – Perhaps you hold a policy that, while fully paid is no longer required as your family has grown or your financial situation changed.  You can transfer ownership of the policy to Shepherds of Good Hope Foundation and name it as a beneficiary.  You will receive a donation receipt for the fair market value*, just as if you had made a cash donation.  The Foundation should be consulted prior to making any transfer of insurance

 

Sign over a partially paid policy – When you transfer ownership of a policy that is partially paid and name Shepherds of Good Hope Foundation as beneficiary, you will receive a tax receipt for the fair market value*, as well as for further premiums you pay on the policy.

 

Purchase a new policy and make Shepherds of Good Hope Foundation the owner – When you make Shepherds of Good Hope Foundation the owner and beneficiary of a policy, you are entitled to tax receipts for premium payments.

 

Make Shepherds of Good Hope Foundation the beneficiary of your policy without transferring ownership – The proceeds of the policy will be paid to Shepherds of Good Hope Foundation immediately upon your death.  Now new tax regulations allow your estate to receive a charitable tax deduction for the amount of insurance proceeds.

 

Make your estate the beneficiary of the life insurance policy and bequeath the amount of the policy to Shepherds of Good Hope Foundation in your Will – You will not receive tax benefits during your life but your estate’s tax liability will be reduced.  However, your donation will be delayed while your estate is processed and because your Will can be challenged or your estate reduced by fees/creditors, the full value of your intended contribution may be diminished.

 

Have your insurance advisor review annually.

 

*When you receive a tax receipt for fair market value, you may have to claim some portion of the fair market value amount as income to offset the tax credit.

 

Whether you wish to support Shepherds of Good Hope Foundation in general or contribute to a specific program of Shepherds of Good Hope through a gift of life insurance you can make an important difference in the future.

 

Other Useful Links

Shirley’s Legacy

Frequently Asked Questions

Wills and Charitable Bequests

Planning your Estate and Leaving a Lasting Legacy

Gifts of Property

Charitable Remainder Trusts

Glossary of Terms