Planned Giving

A Gift of a Life Insurance Policy

If you have ever thought about making a charitable gift to the Toronto Symphony Orchestra but struggle with the idea of donating even a small portion of your assets, a good alternative, especially for younger donors and their families, is to consider a life insurance policy.

For example, as a healthy person in the prime of life, if you purchase a life insurance policy you can give more than you thought possible and enjoy tax savings as well. For a relatively modest amount to cover the premium costs, you can ultimately provide a large gift that will have substantial impact on the TSO in the future.

How Can I Donate A Life Insurance Policy?

1. You can purchase a new policy.
   If you name the Toronto Symphony Orchestra as the irrevocable owner and beneficiary, you will receive an annual income tax receipt for the full amount of the premiums paid. Insurance can be purchased at affordable rates and greater leverage is possible when two donors, usually spouses, purchase a joint policy.
2. You can donate an existing policy.
   Old policies that are no longer needed by the donor or donor’s family can create current tax benefits. If you name the Toronto Symphony Orchestra as the irrevocable owner and beneficiary, then you will receive a tax receipt for the net cash surrender value.
3. You can name the TSO as the beneficiary of a new or existing policy.
   A charitable donations tax credit will become available when you designate that the death benefit proceeds of your policy are paid directly to a registered charity such as the Toronto Symphony Orchestra. Your estate will receive a tax credit for the proceeds of the policy when the gift is realized. This tax credit can be applied to a maximum of 100% of your net income in the year prior to, and the year of death.
4. You can donate a policy from your former or current employer.
   You may choose to make the Toronto Symphony Orchestra the beneficiary of a policy you hold from a current or past employer. As in option #3, a donations tax credit will be available when the death benefit proceeds from the policy are paid directly to the TSO.

The Benefits of Donating Life Insurance

• Satisfaction of making a significant gift to the Toronto Symphony Orchestra by making relatively small payments toward a life insurance policy over several years.
• A gift of life insurance is simple, without complex planning details or red tape.
• Proceeds pass quickly to the TSO, free of taxes, fees and probate costs.
• Your gift does not reduce the value of your estate for your heirs.
• Life insurance can provide an annual tax credit or a tax credit in the year of death. Your gift can be structured to provide the maximum tax relief, based on your particular circumstances. For example:
  1. When the Toronto Symphony Orchestra is both the owner and the beneficiary of a policy, you receive immediate tax savings as each premium is tax deductible. In this case, the gift is irrevocable and cannot be changed.
  2. You can choose to retain ownership of the life insurance policy with the subsequent flexibility to change the beneficiary over time as circumstances change. If you choose this option, your estate will receive the tax credit when the gift is realized.

Please consider leaving a charitable bequest to the Toronto Symphony Orchestra in your Will or estate plan. For further information on bequests or other planned giving opportunities, please contact Marion York, Director of Major Gifts at 416.593.7769 ext. 259 or myork@tso.ca.

This information is provided for general information purposes only and does not constitute legal or other professional advice. Readers are advised to seek specific legal advice from their own legal counsel before proceeding with a planned gift.

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