A new simple, unique and innovation way to give to charity

October 01, 2023 | Stephanie Woo, CIM, FMA


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Many want to make a positive impact on their community.  If you are considering making financial donations, you may be interested in learning more about a new simple, unique and innovative way of giving.

By using Canada Life My Par Gift, you will be able to help your favorite charity at the time of your death through your charitable donation of life insurance.

What is Canada Life My Par Gift

Canada Life My Par Gift is a cost-effective life insurance policy where you can pay the premium(s) on a life insurance policy that is owned by the charity - ensuring the payout to the charity at time of death while you receive the benefit of reducing your tax bill during your lifetime. Charities are not subject to the tax implications that individuals or a business corporation would have to consider. 

Gifting with Canada Life My Par Gift 

 

 

The Tax Benefits 

You will be eligible for a tax receipt at the time you make the premium payment directly to Canada Life or when you make the donation to the charity who will make the premium payment to Canada Life. However, you should consider making the payment directly to Canada Life in order to ensure you receive the donation tax receipt in the calendar year. 

If you will have a significant tax liability at death, you may want to consider owning another policy personally and naming the charity as a beneficiary. The insurance proceeds for that policy can be eligible for a donation tax receipt to be issued by the charity for your final tax return. 

This table below shows the differences in tax benefits that individuals and corporations can receive. 

To learn more about how this may be incorporated into your overall wealth plan or help you get started with one, reach out to Stephanie Woo at 604.257.3234 or stephanie.woo@rbc.com and she will help you review the options available for you and those you care about.