The 2000 budget allows them to now purchase a life insurance policy, naming the charity as beneficiary, and the tax credit for the full face amount will be available to them in their final tax return to offset other tax owing. In the above example, the tax credit came at exactly the same time as the tax bill, the one wiping out the other.
The clients cost was cut to one third, the gift of two hundred thousand dollars came at no additional cost to the donors, the gift did not take funds from the estate, there were no liquidity issues and the cottage was passed fully unencumbered to the next generation. |