CANADA Law and Practice Contributed by: Ian Hull, Suzana Popovic-Montag and Nick Esterbauer, Hull & Hull LLP
the Office of the Public Guardian and Trustee (PGT). The PGT, or the charity itself, may require the estate trustee to apply to pass their accounts with regard to the administration of the estate, and has the right to raise objections regarding how estate assets were managed. The beneficiary of a specific bequest or general legacy typically has no such right, and it may be an easier way to provide a designated benefit to a charitable cause and attract the related tax benefits. Life Insurance Several options exist for naming a charity as the ben - eficiary of a life insurance policy, with the simplest being merely to name the charity as the beneficiary of the life insurance policy. The result will be a significant payout. Depending on how the policy is structured, it can be used to provide the individual and/or their estate with significant tax savings. Naming a charity as the beneficiary may be suitable if it is anticipated that income tax payable on the terminal tax return will be significant. The proceeds of the life insurance also will not be subjected to income or estate administra - tion taxes.
Another option is to name the charity as the irrevoca - ble beneficiary of the insurance policy. In such cases, the taxpayer may receive tax credits for the premi - ums paid into the policy. However, even though the charity will ultimately receive the policy proceeds, the taxpayer’s estate will not receive the benefit from the donation for the amount of the proceeds in addition to the premium contributions.
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