Planned Giving

Planned Giving is the reassignment of assets
by a donor to a charity.

For personal reasons, you may wish to create a substantial bequest or a foundation for a particular charity or group of charities. Planning takes into consideration your needs and those of your loved ones, your philanthropic goals, and how you wish to be remembered. You do not have to be a millionaire to leave a million! Charitable gifts express your life values and help make the world a better place for your children and grandchildren. They touch the lives of people who never got the chance to know you. Planning your gift is a wonderful way to recognize the difference that the Abbotsford Hospice Society (AHS) has made in your life and will make for others.

There are many options to consider that enable you to make a significant gift while maintaining your cash flow. Although some of the gift options outlined here can be completed on your own, we recommend that you consult with your financial and legal advisors to ensure that you make fully informed decisions (see additional resources, at left). Planned gifts offer significant tax advantages.

Give the Gift of Life Insurance

Why Donate Life Insurance?

• It's simple, convenient and uncomplicated. A life insurance agent can advise you on the type of policy that would best fit your needs.
• It's a relatively inexpensive way to make a larger gift than you might otherwise be able to, without depleting your assets now, or your Estate later.
• It provides leverage in the sense that the ultimate value of your policy will be far more than the premiums you pay.
• It saves taxes today! There is immediate tax relief in the form of the charitable tax receipts.
• It ensures Estate Preservation — that is, the Estate left to your beneficiaries is not diminished because life insurance, by its very nature, creates a separate "Estate".
• Gifts of life insurance enable you to make a significant contribution in the future, without having to lay out large amounts of discretionary income in the present.
• Transferring ownership of a life insurance policy to the AHS enables you to make a significant gift to the future of hospice care, research and education.
• You retain access to the cash value of the policy, should personal circumstances change.
• It eliminates Probate, Legal and Executor Fees; life insurance is not subject to probate costs or delays in settlement.
• It promotes peace of mind in the sense that you can plan, arrange and announce the gift yourself and you will know that it will occur just as planned.
• Life insurance is not a matter of public record, so you can remain anonymous if you wish.
• Unlike a Will, this gift cannot be contested.
• It ensures recognition — you and your gift can be honoured during your lifetime.
• You demonstrate your commitment to comprehensive, dignified hospice care.

Why Name AHS as Beneficiary of a Life Insurance Policy?

Many donors may wish to retain access to the cash value of their life insurance policy so they can change the beneficiary in the event that family circumstances change. In this case, the donor can name the AHS primary beneficiary of some or all of the proceeds, or contingent beneficiary in the event primary beneficiaries do not survive.

There are several ways that life insurance can be of value ...

• A Gift of a New Life Insurance Policy
  You can apply for a new life insurance policy and name the charity as beneficiary. The premiums you pay will be recognized as a charitable donation and a tax receipt will be issued to you each year. You purchase a new policy on your life and make the Abbotsford Hospice Society owner and beneficiary of the policy. You then qualify for annual tax deductions on the premiums you pay.
  
  This might be the same amount as you are already giving on a regular basis, or modestly more, but the leveraging of the insurance makes a huge difference in the end gift to us. For example, you would like to give $100,000 to AHS, but you can't commit this amount to your Estate plan. Through the gift of a life insurance policy, you can leave a gift of $100,000 to AHS at an after-tax cost to you of only $9,000.



• Gift of a Paid-Up Policy
  You can donate an existing insurance policy to the charity and receive immediate tax relief for the value of the policy at the time of the gift. A tax receipt will be issued by the charity for the cash surrender value (minus any outstanding loans), plus any accumulated dividends or interest. In this case, the policy is treated as if it were disposed of, and any "policy gain" would be taxed as income to you. As before, all future premiums are considered charitable donation.



• Gift of a Partially-Paid Policy
  If you transfer ownership of a partially-paid life insurance policy to the AHS, you will be issued a tax receipt for each of the subsequent premiums you pay. If at some point you decide not to pay the premiums, the AHS can let the policy lapse, pay the premiums, or have a third party pay them.



• Combination Life Insurance Policy and a Will Bequest
  To maximize this option, your Estate is named beneficiary of the life insurance policy and a charitable bequest is made to AHS in your Will. You can name your Estate the beneficiary on a new policy, or on one you already own, and then add a clause to your Will to donate the proceeds to AHS. There will be no current tax advantage, but your Estate will receive the charitable donation tax credit when the proceeds are distributed to AHS. The tax credit in your terminal tax return will offset additional taxes incurred by the Estate as a result of capital gains realized at your death. The Estate may also use the charitable tax receipt to offset liability in settling taxes.