Tax effective life insurance gifts
Establishing a MD Life Plan policy with your favourite charity as the owner and beneficiary can be a generous and satisfying accomplishment. It can also allow you to claim charitable donations in the year the premiums are paid. A MD Life Plan policy provides a uniquely cost- and tax-effective way to provide for a cherished cause, while still benefiting you while you are alive.
Alternatively, a properly structured life insurance funded strategy can provide for your favourite charity and, upon your death, offset tax liability on your terminal income tax return. For example, you can own a MD Life Plan policy and name the charity as its beneficiary, or you can designate your estate as the beneficiary then, through your will, name the charity as a beneficiary to the value of the policy's death benefit. The amount donated to the charity can then be claimed on your terminal tax return. This leaves you the flexibility to structure a MD Life Plan policy to maximize giving, and reduce your estate's tax burden.
To learn more, contact your MD Management Financial Consultant or call 1 800 267-2332 to be put in touch with a MD Management office near you.
