Planned Giving Charitable Gifting Through Life Insurance
Story appeared in the 2013 issue of QMS Connections Magazine.
BY LEANNE SCHULTZ, OPERATIONS & HR MANAGER
ALUMNI CATHERINE DUNIK (‘84)
I graduated in 1984 from QMS and life took me in the varied directions it takes all of us.
As I went about my alumna years, I did what many of us did post QMS: graduated from university, got a job, got married, bought a house, started to save for an RRSP, and made a will — all those very grown up things. But in the back of my mind, like so many QMS alumna, the school remained important to me.
I truly felt a debt of gratitude to Queen Margaret’s, for the education, the teachers, and the whole QMS experience that sent me out in the world with a solid foundation — not to mention those treasured friend-ships that have been a constant in my life and a reminder of all things QMS. This desire to give something back to the school influenced my decision to make a planned gift to the school. The option I chose in February 2000 was Charitable Giving Through Insurance. I chose this as it is a relatively inexpensive way for me to assign QMS as the beneficiary and policy holder to a life insurance policy, allowing me to leave a nice legacy to the school simply by paying the small monthly cost of the life insurance policy. This particular option was ideal for me, as it didn’t impinge on any other present or future financial obligations, such as a home, investments or future plans. And as a bonus, I receive a healthy tax deduction each year to boot.
Simply put, through this type of planned giving, you can make a gift and reap the tax deduction benefits each and every year. At the same time, you have secured your gift to the school and assisted the school with its long term goal planning as well.
As with any financial decision, one should consult with a financial planner to make sure the choice is the right one for them. For me, it’s been a wonderful option for the past thirteen years, as I continue to support QMS and the future of the school.
Above: Kindergarten student Gracie Neufeld and her Grade 3 sister, Maddex, share a moment with their grandfather on Grandparent’s Day
Some of the benefits of donating to QMS through life insurance:
• The premiums are quite low for the amount of the policy value.
• You can receive tax benefits every year, through an annual tax deduction, years before the value of the gift is triggered.
• You have the ability to make a significant gift of funds that are considered independent of your estate, and therefore cannot be challenged, remaining both private and confidential.
• You can designate the school as beneficiary on a new or existing policy. The school receives a substantial donation and the estate receives a charitable tax deduction for the value of the policy.
• You may specify the use of your gift: Scholarship, School Development, Equestrian, Chapel, Sports, etc. Whatever element of the school’s future is of most concern to you.
• You know exactly the amount of the gift you are leaving, as it is outside your estate, so no probate or taxes payable or worries that your gift will be diminished.