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The Benefits of a Donor Advised Fund and Wealth Replacement Insurance

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Donors who choose to pursue their philanthropic goals through a wealth replacement insurance policy can benefit from establishing a Donor Advised Fund (DAF) set up through Gift Funds Canada.

A DAF provides donors with the flexibility to leave a lasting charitable legacy to their heirs while maintaining some influence over the investment management of their donated assets. In this article, we take a closer look at some of the key benefits of Wealth Replacement Insurance and DAFs and how a professional advisor from Gift Funds Canada can help.

A DAF can provide donors with both immediate and long-term benefits. Where a DAF has been created through Gift Funds Canada, assets contributed to it would receive an immediate donation receipt for the donor. Any financial gains on these donated assets could build over time within the DAF tax-free. This approach helps provide the donor and their heirs the flexibility to choose to support a single cause, several causes or enjoy the flexibility of evolving their gifting strategy over time.

When a DAF is incorporated into a donor’s giving strategy and includes the added advantages of wealth replacement insurance, the donor can enjoy seeing the positive impact of their philanthropy during their lifetime. Through their wealth replacement insurance policy, the donor’s chosen assets are gifted to their preferred causes through their DAF, while at the same time, they can be assured that their heirs will receive a guaranteed financial inheritance once the donor has passed away.

Putting together a giving strategy that spans a lifetime can be challenging for any donor. A Gift Funds Canada advisor can assist donors in setting up a DAF that provides them with the flexibility to gift assets in accordance with their goals during their lifetime, while also ensuring that their heirs are looked after once the donor has passed away.

To learn more about wealth replacement insurance and the benefits of a Donor Advised Fund, please visit the Gift Funds Canada website.