Gift of Insurance
A practical way to leave a larger legacy – and gain immediate tax relief.
The gift of life insurance is an increasingly popular choice among donors who want to make a significant gift, but do not have large sums at their disposal. There are several ways to do this. Each offers distinct tax advantages.
- Existing policy – transfer ownership and beneficiary designation of an existing, paid policy to Royal University Hospital Foundation. You receive a charitable tax receipt for the cash surrender value of the policy at the time of transfer.
- New policy – transfer ownership and beneficiary designation of a new policy on which you are paying premiums to RUH Foundation. You receive a charitable tax receipt for your premium payments.
- Retain ownership – name RUH Foundation the beneficiary on an existing or new policy, but retain ownership of the policy. You do not receive tax relief during your lifetime, but your estate will receive a tax credit for the amount of the policy payout.
Life insurance is not subject to probate costs or delays in settlement. The full proceeds are payable to the RUH Foundation at maturity or your death.
Planning Tip: Once you transfer ownership of a new or existing life insurance policy, the designation cannot be changed. Be sure to talk with your advisor or life insurance representative to ensure your choice fits your needs.
For more information on planning your gift, please contact Bruce Acton, Director of Development, at 655-1984.
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