Legacy Pension

Create an exceptional charitable gift that combines favourable elements of an Annuity, Life Insurance, Philanthropy and Tax to achieve guaranteed income, maximize legacy gifts, create annual gifts, and save taxes.

Case Study

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).

4 ways to implement the Legacy Pension Strategy:

1. $1 million Legacy Gift + Pension

$1 million Life Insurance legacy gift + receive lifetime pension of 9.4% (tax-equivalent) on the $1 million donation

2. $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: $44,500

Annual Tax Savings: $22,250

Total lifetime donation to charity: $1,667,500

Net cost to donor: $564,750

3. $1 million Legacy Gift + Second Larger Legacy Gift

$1 million Life Insurance legacy gift + additional $1.4 million to charity

Use income to fund another charity Life Insurance policy for $1.4 million

Total Gift to Charity: $2.4 Million

Net cost to donor: $564,750

4. $1 million Legacy Gift + $1.4 million Estate Recapture

$1 million Life Insurance legacy gift + $1.4 million estate recapture for family For

your family, use income to fund another Life Insurance policy for $1.4 million

Total to charity: $1 million

Total to Family: $1.4 million