GPS: GIFT PENSION STRATEGY™
DONATIONS WITH BENEFITS
CREATE AN EXCEPTIONAL CHARITABLE GIFT that combines favourable elements of an Annuity, Life Insurance, Philanthropy and Tax. Achieve guaranteed income, maximize legacy gifts, create annual gifts, and save taxes.
A RECENT CASE
A 70-year-old married couple, paying taxes at the highest rates, age 85 life expectancy. They are prepared to make a $1 million charitable gift and want to maximize the impact of their generosity and reduce tax. Their $1 million gift can be directed to a Charity, Private Foundation or Donor Advised Fund (DAF) at a Community Foundation.
➊ $1 million Legacy Gift + Pension
$1 million Life Insurance legacy gift + receive guaranteed lifetime pension of 9.16% on the $1 million donation
➋ $1 million Legacy Gift + Annual Gifting
$1 million legacy gift + lifetime annual gifts.
If income not needed, donate it to charity and further reduce annual taxes.
Annual donation for life: $42,582 Annual tax savings: $21,465 Total lifetime donation to charity: $1,638,775 Net cost to donors: $678,025
➌ $1 million Legacy Gift + Second Larger Legacy Gift
$1 million Life Insurance legacy gift + additional $1.7 million to charity. Use income to fund another charity Life Insurance policy for $1.7 million
Total gift to charity: $2.7 Million Annual tax savings: $21,465 Net cost to donors: $678,025
➍ $1 million Legacy Gift + $1.7 million Estate Recapture
$1 million Life Insurance legacy gift + $1.7 million estate recapture for family. Use the income to fund another $1.7 million Life Insurance policy for your family.
Total to charity: $1 million Total to family: $1.7 million
DON’T DISINHERIT YOUR FAMILY. ADOPT A CHARITY AND DISINHERIT THE TAX DEPARTMENT.
Mark Halpern can be reached by phone at 416-364-2929, or by email: Mark@WEALTHinsurance.com
“A unique charitable donation that maximizes the impact of your generosity and reduces your taxes”