Gift of Life Insurance
There are several ways to make a gift of life insurance to a charity.
- You can purchase a life insurance policy and make a charity both the beneficiary and owner. With this option, you will receive a tax receipt for the annual premiums paid. This way, you are able to make a substantial future gift at a considerably reduced after-tax cost.
- You can assign an existing policy to a charity. You will receive a tax receipt for any cash value in the policy. While there may be a taxable gain to report as income, the resulting tax credit could be greater than any income tax triggered by the donation. In some cases, it may be possible to receive a tax receipt for the fair market value of the policy as determined by an actuary (less any policy loans outstanding).
- You can name a charity as a beneficiary of a policy without transfer of ownership. In this case, an immediate tax receipt is not issued, but your estate will receive a tax receipt when the policy is paid upon your death. The receipt will produce a tax credit for your final tax return.
A life insurance policy naming a charity as a beneficiary is processed outside of your estate and therefore, is not subject to probate fees or challenges to your will.
Contact Paulette Sweeney-Goodwin, Managing Director, to explore all of the options available. Paulette is available at 902 749-16692 or
All discussions are held in strict confidence and do not require any commitment on the part of the donor.