1. If Amanda and David wanted to transfer the ownership of all 5 policies to Paws and...
Question:
1. If Amanda and David wanted to transfer the ownership of all 5 policies to Paws and Claws today through an absolute assignment, calculate the total amount of their donation receipt they would be eligible to receive.
2. If David and Amanda decided to complete an absolute assignment of both their term policies and Amanda’s universal life policy but continue to pay the premiums indefinitely, calculate their eligible donation amount for the year.
3. If David decides to name Paws & Claws as the beneficiary of his term policy and removes his son as beneficiary, calculate the donation amount in the year of David’s death (ignore premiums).
4. What is the best course of action David can take to ensure that he becomes eligible for the donation in the year of death of the life insured (Amanda) on his term life policy?
5. David and Amanda decide to complete an absolute assignment as eluded to in question #1, the couple has incomes of $200,000 and $90,000 respectively. Which of the following statements are pertinent to their circumstances?
6. Based on your answer in question #2, calculate the donation tax credit assuming the couple claims the donations individually - the income threshold for the year is $202,800.