1. Methods of making Charitable donations John Merlo BA,CFP November 12 th, 2014 Mutual Funds and securities related to financial planning services are offered through Qtrade Asset Mgt. Inc., Member MFDA

2. Agenda Assigning Ownership of Life insurance Term Policy assignment Whole life/UL assignment Charitable Bequest Mutual Funds and securities related to financial planning services are offered through Qtrade Asset Management Inc., member MFDA

3. Assigning ownership Make a significant contribution at modest cost Most cases tax credits are issued Allows for a large contribution even if lack the existing capital

4. Term life Assignment Charity must assume ownership of policy No cash value so no tax receipt issued Tax receipt issued for premiums paid by taxpayer Charity can establish new policy on taxpayer Mutual Funds and securities related to financial planning services are offered through Qtrade Asset Management Inc., member MFDA

5. Term life example John holds a life policy with a death benefits of $300,000. The premiums on the policy are $120/month. John decides to assign policy to the LeRoi Foundation and continues to pay premiums. Charity now issues a receipt each year of $1440, calculated as (#120x12 months) Mutual Funds and securities related to financial planning services are offered through Qtrade Asset Management Inc., member MFDA

6. Whole Life/UL Policies Tax receipt for cash value at time of assignment Tax receipt for future premiums Older policies may have tax issue depending on ACB but possibly offset by tax receipt. Mutual Funds and securities related to financial planning serivces are offered through Qtrade Asset Management Inc., member MFDA

7. Example Danielle assigns her whole life policy to the LeRoi Foundation. The policy has a CSV of $48,000 and ACB of $35,000. As a result, Danielle realizes income of $13,000 ($48,000-$35,000) and receives a tax receipt for $48,000 to offset the taxable income. Mutual Funds and securities related to financial planning services are offered through Qtrade Asset Management Inc., member MFDA

8. Charitable Bequest Gift is at time of death Flexibility to change beneficiary Name estate as beneficiary Will outlines the bequest funded by proceeds Mutual Funds and securities related to financial planning services are offered through Qtrade Asset Management Inc., member MFDA

9. Charitable Bequest Premiums are not considered a taxable donation Estate can claim credit up to 100% net income from proceeds Insurance proceeds subject to probate fees Mutual Funds and securities related to financial planning services are offered through Qtrade Asset Management Inc., member MFDA

10. Beneficiary designation only Designation is revocable so no tax receipt for premiums No tax receipt for direct proceeds Mutual Funds and securities related to financial planning services are offered through Qtrade Asset Management Inc., member MFDA

11. Questions? John Merlo BA, CFP Tel. (250) 368-2631 Toll Free 1-877-691-5769 Fax (250) 368-2632 Email: john.merlo@kscu.com Mutual Funds and securities related to financial planning serives are offered through Qtrade Asset Management Inc., member MFDA