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Life insurance policy totalling $250,000 donated to QEH

Peter and Karen MacDonald recently contributed their paid-up $250,000 life insurance policy to the Queen Elizabeth Hospital Foundation and encourage other local business owners to look at making similar gifts.
Peter and Karen MacDonald recently contributed their paid-up $250,000 life insurance policy to the Queen Elizabeth Hospital Foundation and encourage other local business owners to look at making similar gifts. - Contributed

Being in the car industry for most of his working career, Fair Isle Ford franchise owner Peter MacDonald thought it was time to support the Island community that has supported his family business.

Peter and Karen were married in 1980 and five years later purchased D. Alex MacDonald Ltd. in Summerside from Peter’s father, D. Alex, who had operated the Ford franchise since 1961.

After successfully operating in Summerside for many years, the couple expanded and purchased Fair Isle Ford in Charlottetown and Montague.

Recently, they decided to give back to P.E.I.

“Like many new business owners, we had purchased a life insurance policy as a safety measure to cover our business loan,” says MacDonald. “Fortunately, after many years of hard work and dedication, our company did well, and we were able to pay off the insurance policy in the 20-year timeframe.”

With MacDonald’s volunteer role as a Queen Elizabeth Hospital Foundation director and his wife’s long career as an X-ray technologist, they know first-hand the importance of top-notch medical equipment in helping diagnose and treat illnesses. This knowledge helped in their decision to transfer their paid-up $250,000 life insurance policy to the QEH Foundation.

“We have a deep admiration for health care in our province,” says MacDonald. “In the early years, we relied heavily on Karen’s income while she was employed at three different Island hospitals, including the Charlottetown Hospital, the QEH and PCH’s diagnostic imaging department.”

“And with the QEH being the Island’s major referral hospital and more than 1,000 people a day receiving care, we knew it was the best place to make our gift. Our policy had served its purpose, and with the QEH Foundation’s assistance, we knew there were tax advantages in donating it as a charitable gift,” he says.

MacDonald says P.E.I. has thousands of small businesses, and many owners will be considering retirement in the next few years. There will be a massive transfer of business assets to a new generation of owners, and he thinks charitable giving can reduce the tax burden.

“We hope by sharing we can inspire others to consider a gift of life insurance,” says MacDonald. “We were very pleased with the entire process and we received a charitable tax receipt for the fair market value of the policy. It’s a win-win situation and everyone benefits.”

In recognition of this generous gift, Peter and Karen MacDonald will have their name added to the Major Benefactor ($100,000 - $199,999) giving level on the QEH Foundation donor wall located in the main lobby of the QEH.

This story was submitted by the QEH Foundation

Ways to give life insurance:

Transfer ownership of a paidup policy to the QEH Foundation - receive a charitable donation receipt for the fair market value of the policy.

Take out a new policy and name the QEH Foundation the owner and beneficiary receive a charitable tax receipt equivalent to the premiums paid each year.

Name the QEH Foundation the owner and beneficiary of an existing policy with premiums still owing receive a charitable tax receipt immediately for the value of the policy and a charitable receipt for all future premiums that are paid.

Another situation may be that you received free shares several years ago from a life insurance company because you owned an insurance policy. These shares are ideal to donate to the QEH Foundation to eliminate capital gains tax.

For more information, ask your financial adviser or contact the QEH Foundation at 902894-2425 or www.qehfoundation.pe.ca.


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