The Reward of Giving
Philanthropy and lasting community involvement is a growing and important priority for Canadians of means. Financial plans often include providing enduring financial support for charities. While options exist to provide this continuing charitable support, donors of all ages have discovered life insurance is cost effective and preserves the estate assets for their family.
The Sorrell Advisory Team works with donor's advisors and the charity to develop an effective strategy by combining the charitable donation tax credits with the advantages of a tax exempt life insurance policy. The basic structure sees the purchase of life insurance which names the ultimate beneficiary the charity of choice and affords the policy holder the opportunity to compensate for the cost of the gift through other cash flow benefits, which emerge from the overall planning.
This approach results in larger gifts at a lower cost with minimal impact on estate assets.
Related Technical Strategies & Concepts:
- Tax Exempt Insurance
- Donation Tax Credits
- Specialized Investment Loan Facility
- Split Dollar Arrangements
- Premium Funding with Appreciated Stock
- Disbursement Quotas
