Planned Giving: How to give less to the taxman by giving to Ottawa Riverkeeper

Like it or not you have to pay taxes. Ottawa Riverkeeper and Todd Evans of Desjardins Financial Security would like to introduce a new way to give to a charity, The Planned Gift Concept, which helps you minimize your taxes.

The Planned Gift concept lets you make a substantial financial contribution on your death to a charity like Ottawa Riverkeeper or such foundations as the Community Foundation of Ottawa, which manages the Ottawa Riverkeeper Endowment Fund. The Planned Gift concept is extremely simple. You apply for a life insurance policy similar to the one you probably already own to protect your loved ones in the event of your death. However, this policy is somewhat different: The owner and beneficiary at your death is Ottawa Riverkeeper.

Example: Since the death of her brother, an avid fisherman, Bonnie (shown above), age 38, gives $500 each year to Ottawa Riverkeeper. On her financial planner’s advice, Bonnie takes out the Planned Gift Concept in order to maximize what she gives to Riverkeeper while taking advantage of annual charitable donation tax credits. Ottawa Riverkeeper will receive a $50,000 tax-free benefit when Bonnie dies. Had Bonnie not taken out this life insurance policy, she would have had to donate $500 a year for 100 years to reach this amount.

Ottawa Riverkeeper receives a tax-free benefit for the amount of the life insurance policy. The benefit, for example, could be $10,000 to $7.5 million, it is your choice based on what fits your budget.

You can also choose to either receive tax credits now calculated on the annual premiums and applied to your income each year, or a tax credit on the insurance proceeds of the policy can be applied to your taxes at death.

To receive more information on planned gifts which offer you tax advantages now while protecting the magnificent Ottawa River in the future, please contact us.

In this world, nothing can be said to be certain, except death and taxes.

Benjamin franklin