Back
19 Jan 2018

New legacy partnership bypasses deceased estate to make direct charitable donations

New Zealanders now have a way to make meaningful donations to a charity of their choice direct from their life insurance policy, safe and separate from common threats to their legacies such as tax, bureaucratic costs, red tape or disputes over Wills and inheritances.

A partnership between New Zealand’s biggest access point for charitable giving, Perpetual Guardian – which administers almost 600 Charitable and Endowment Trusts and the Perpetual Guardian Foundation (The Foundation) – and life insurance company, Partners Life, has given rise to a new, innovative life insurance policy which pays out to a charity after your death, rather than to your estate.

Manager of philanthropy services Kirsten Taylor says that the desire to give comes from the heart, but the ability to make an ongoing difference comes from sound thinking and careful planning. “While the ability to make donations through a low-cost, flexible, single access point – whether just $5 or $5 million – has been around since 2014 thanks to The Foundation, the Partners Legacy Gift Plan represents the first time it has become possible to make a significant difference without needing to commit today’s capital. This is achieved by contributing a small monthly premium over time rather than setting aside a large sum of money to satisfy your desire to leave a legacy.

“This is one more step in our mission to respectfully manage significant donations made by everyday people whose final wish is to make a meaningful contribution to a cause or charity that they care about – whether it’s the SPCA, cancer research, the environment or any other charity of their choosing.

“This partnership makes sure that your last wishes are respected. That the donation you gifted gets to where you intended for it to go, in the amount you specified.”

Partners Life managing director Naomi Ballantyne says she has witnessed first-hand how people’s wishes to make a charitable donation can be undermined after their deaths.

“Legal challenges to Wills, legal costs, red tape, tax and bureaucracy can take away from a legacy. It’s just the reality of how the world works.

“The Partners Legacy Gift Plan is designed and delivered in conjunction with Perpetual Guardian and The Foundation to give you control and certainty that your wishes will be respected and fulfilled after you’ve gone.”

The Partners Life Legacy Plan will make sure that:

  1. Your wishes are recorded and held for safekeeping by Perpetual Guardian;
  2. Your selected charity benefits from your policy proceeds;
  3. The amount you select is paid directly to Perpetual Guardian’s low cost and flexible charitable entity, The Foundation;
  4. Your estate is bypassed to guarantee that the claim proceeds as per your wishes;
  5. You, the owner of the policy, remain in complete control until the claim becomes payable.

Ms Ballantyne says, “In exchange for a monthly premium – which only starts to increase after the age of 80 – you can leave money to a charity or cause of your choice without the inconvenience of tying up your current capital.

“Both Partners Life and Perpetual Guardian strongly believe in giving to a good cause, so Partners Life will also donate an amount equivalent to 5% of every Partners Legacy Gift Plan premium we receive, after the first policy anniversary, to The Foundation.”

The Foundation was set up by Perpetual Guardian in 2014 to make charitable giving more accessible to Kiwis from all walks of life, at a lower price point.

The charitable vehicles, administered by Perpetual Guardian– as the custodian of philanthropic investments – facilitate the donation of approximately $25 million per annum invested in grants and scholarships both during and after a donor’s lifetime.

Manager of philanthropy services Kirsten Taylor says it is important to remember that bequests are not just for the ‘rich and famous’, they are also for everyday people.

“After you’ve taken care of your family and friends, you too may wish to leave a gift to your favourite charities in your Will, which is why we also offer Wills to donors at a more accessible price point, as well as partnering with organisations who wish to enhance or create bequest programmes.”

ends


For further information:

Alexander PR

Jemma Crook

+64 (0)21 271 3318

+64 (09) 347 1044

jemma@alexanderpr.co.nz

About Perpetual Guardian

New Zealand’s leading statutory trust business, Perpetual Guardian, was created with the coming together of Perpetual Trust and Guardian Trust. As two of New Zealand’s oldest trustee companies, they have more than 130 years of experience in providing estate planning services to New Zealand individuals, families and companies.

In the private client services sector, Perpetual Guardian’s mission is to ensure that every New Zealander has a Will and every child is protected by one. They do this by making Wills affordable and accessible to everyone. All consultants are specialists in their field – for example, Client Managers are experts in finding a solution that uniquely fits each client’s needs, using well-crafted Wills, Trusts, EPAs and other legal structures. Perpetual Guardian helps to preserve everything clients have worked for by ensuring their wishes are carried out, often for generations, after they are gone.

The experience and reputation of Guardian Trust has made the company the preferred provider of corporate trustee services for many of New Zealand’s leading corporations, financial institutions, fund managers and banks. Guardian Trust proactively monitors the obligations of its clients to their investors in a commercial and pragmatic manner and with regard to its duties at law, including the provisions of the relevant Trust deed. As a statutory supervisor and corporate trustee, Guardian Trust has over $140 billion in assets under supervision.

Perpetual Guardian offers strategic advice, long-term investment management, careful planning and a commitment to ensuring that people’s generosity is effectively sustained over many lifetimes.

About the Perpetual Guardian Foundation (The Foundation)

With more than 130 years of experience in managing private wealth and charitable funds, Perpetual Guardian has established a proud reputation for long-term planning, prudent management and specialist Trust administration. The Foundation is uniquely positioned to use that experience to design effective grant-making programmes.

The Foundation is a unique offering. Its innovative structure creates a single access point for everyday philanthropists to engage with a range of giving options for meaningful philanthropy. That structure also helps minimise fees and maximise impact – demonstrating Perpetual Guardian’s commitment to value.

The Foundation was designed to make giving accessible for everyone. Donors can have an impact no matter how big or small their contribution.

About Partners Life

Launched in April 2011, Partners Life entered the market with a fresh, innovative offering for the protection of New Zealand families and businesses. With unprecedented growth since launch, Partners Life is now one of the most substantial competitors in the New Zealand life insurance industry, serving nearly 140,000 customers in New Zealand. Products include life insurance, income protection, medical insurance, disability insurance, trauma cover and business risk protection.

The board of directors and executive management team of Partners Life have many years of experience in the financial services industry, both domestically and internationally, and together have created an entirely unique business model that values and tangibly rewards customer loyalty and the support of financial advisers.

About Partners Legacy Gift Plan

The Partners Legacy Gift Plan, allows customers to make a meaningful contribution to their favourite charitable cause(s) when they pass away, enabling them to make a significant difference without needing to commit today’s capital, and with certainty that their wishes cannot be challenged.

PerpetualGiving
Guardian Trust
Ewills
Bereavement Helpline
FSCL

Perpetual Guardian is a trading name of The New Zealand Guardian Trust Company Limited and Perpetual Trust Limited. For Authorised Financial Advisers, a disclosure statement is available upon request and free of charge.