Health Sciences North Foundation | Fondation Horizon Santé

Planned Giving is a Legacy Gift that Keeps on Giving

Help ensure our children have access to the best possible health care, today and tomorrow.

By planning a gift to Health Sciences North Foundation, you will be putting the best tools in the hands of our medical teams.

Your legacy gift will impact patient care, fund health care research and provide modern facilities and equipment to keep Health Sciences North at the forefront of patient care in north east Ontario.

Upon death, Canadians have few beneficiaries to choose from as to whom their assets will be passed to including family and friends, charity, and in many cases, the Canada Revenue Agency. When it comes to donating to charities, planned giving can be done in the form of monthly contributions, lump sums or even at death via the estate. An efficient way to donate is via life insurance.

This can be done in 2 main ways:

Opportunity 1 - Give a new policy
Opportunity 2 - Name a charity as beneficiary of a policy

Under the first scenario, charitable receipts are issued prior to death, while under the latter scenario a charitable receipt is issued only following death.

A donor could use a permanent life insurance policy to fund a large donation to the charity at death. The life insurance proceeds, upon the death of the life insured, could be paid to a chosen charity or charities by means of a direct beneficiary designation on the policy or via the estate with the estate as beneficiary and appropriate clauses in the donor’s will.

If the donor would like the gift to be made through their will:

  1. The donor would purchase a policy on his/her life, retain ownership of the policy, and the estate would be designated as the beneficiary.

  2. The donor would pay the insurance premiums  (premiums are not considered to be a charitable donation as the policy is not owned by the charity).

  3. At death, a tax-free payment would be made by the life insurance company to the estate of the policyholder, and this amount would be paid from the estate as a donation to the named charity or charities in accordance with a specific direction in the will.

  4. The charity would issue a receipt in the name of the deceased policyholder for the amount donated.

Setting up a life insurance policy that is owned by the charity

This type of charitable giving will appeal to someone who wants to make a large donation to a favourite charity at the time of death but does not have a large estate, or, does not want to reduce the size of the estate which is to be bequeathed to heirs.

  1. This method will appeal to those donors who would wish to benefit from charitable tax credits prior to death since there will be a tax receipt issued in any year in which a premium is paid. In view of the significant financial support being provided, the donor may be able to direct how the funds are to be used.

  2. The insurance policy will normally be permanent life insurance, as both the donor and the charity will want the life insurance proceeds to be paid no matter when death occurs.

  3. At the donor’s death, the life insurance proceeds from the policy that is owned by the charity are paid (tax-free) to the charity. The proceeds do not form part of the donor’s estate, are not subject to probate; and are not subject to be contested by beneficiaries of the estate. The donation can be confidential.

These are just a few of the ways in which you can plan a gift for health care.  We encourage you to work with your financial and legal advisors to identify how you best feel you wish to support a legacy gift. They will ensure your gift is properly tailored to your personal circumstances and that you maximize any tax advantages.

If you have specific questions about how your legacy gift can impact the future of health care in north east Ontario or to confirm if you have already included Health Sciences North Foundation in your legacy plans,  please contact or 705-523-7130.