This, life insurance based, estate planning technique allows you to create a legacy that is donated to your favorite charitable organization(s).
Upon passing, your designated charitable organization(s) and / or your family trust will receive a pre-determined (tax free) donation. The cost to you is, on average, 35% of the total donation and can be amortized over as many years as you desire. Once the donation is made, your estate will receive a tax credit in the range of 43% to 47% (BC 2017) of the total amount donated.
(Note: There are ways of reducing the above mentioned cost)
That is to say, your annual cost for 10 years will be $3,500. Your tax credit will be at least $43,000 following the donation.
A tax credit directly reduces the amount of tax owed.
If you owe $100,000 and have a $45,000 credit, tax you only actually owe $55,000 (Speak to your accountant to ensure you can use that credit.)
Please contact us for more details or to begin the process.