Charitable Giving Strategy
Charitable Giving Strategy
- Client Profile
- Client wishes to leave meaningful bequest to charity, church, personal foundation, etc.
- Client may not have other beneficiaries.
- Client often has large personal net worth.
- Client may desire to utilize favourable tax treatment of donations via estate.
- Solution Opportunity
- Determine the size of the bequest that the client would like to make.
- Alternatively, determine the amount of tax liability that the client would like to eliminate, on a go-forward basis, or at estate time.
- Donations made at time of death may be used against all of that year’s income, and may be carried back one year prior.
- Donations made while living (including designation of charity as irrevocable beneficiary of insurance contract), may only be used up to 75% of years’ income.
- Purchase permanent life insurance to cover the desired gift/liability/provide desired annual amount.