Donations of life insurance can be an effective way to help Islands Trust Conservancy achieve long-term conservation goals. Islands Trust Conservancy is a qualified donee as a Crown Agent under BC’s Islands Trust Act. You will receive charitable tax receipts for life insurance donations.
Benefits of donating gifts of Life Insurance
In addition to tax savings, donating a life insurance policy includes the freedom to choose what type of policy and how much premium you pay. Your gift can’t be legally challenged because life insurance is considered separate from your other estate assets.
Donating a life insurance policy isn’t subject to probate costs, taxes, or estate debts. You can make a substantial contribution through relatively small monthly or yearly payments.
For example, the premiums on a $30,000 policy will cost far less than the payout amount over time, and when you include your tax credits, you end up paying less overall for a very generous gift.
How you can do this
You can donate a life insurance policy to Islands Trust Conservancy in many ways. These include:
- Taking out a new policy in the name of Islands Trust Conservancy. You will receive a charitable tax receipt for the cash value of the policy and for any premiums you pay.
- Naming Islands Trust Conservancy as the beneficiary on an existing policy. This is a good option if you already have a policy that your family no longer needs for financial stability. At the time of your death Islands Trust Conservancy will receive the policy proceeds and your estate will receive the tax benefits.
- Transferring ownership of an existing policy to Islands Trust Conservancy. You will receive a charitable tax receipt for the cash value of the policy. If you owe annual premiums on the policy, you’ll still pay them, but you’ll also receive tax receipts in the amount of your payments.
We recommend you contact your financial advisor to discuss your options when considering a gift of life insurance.