IG Wealth Management
MANAGING YOUR MONEY
Give to receive
Giving is a selfless act and a good thing -- good for your community, your charities, and others who will benefit from your bounty. And, even though it’s not the prime reason you’ve decided to give back, giving can be good for you, too.
No matter the amount of your philanthropic gift, a sound charitable giving plan will make the best use of your contributions, preserve your legacy, and minimize taxes and/or estate fees. Let’s look at your options.
Name a charity as a beneficiary
In your will, simply leave a bequest of money or gift in kind (securities or artwork, for example) to a recognized charity and your estate will receive a charitable donation tax receipt that could reduce or eliminate the income tax on your final return and possibly on the immediately preceding return.
Establish a Donor Advised Fund
As the donor, you receive an immediate tax receipt for all contributions made to the fund and you also retain the rights to select the charities that are to receive your fund’s annual income.
Establish a Charitable Remainder Trust
This is an irrevocable trust that can hold assets such as cash or mutual funds. All the interest and dividends are paid to you as taxable income. Upon your death, the trust assets (known as the remainder) go immediately to the charity you have designated. When the trust is established, you receive a donation receipt for the “remainder interest” of the trust.
Donate a life insurance policy while you live
This option ensures your charity will receive the total death benefit under the policy while you enjoy certain tax credits.
Donate publicly funded stocks or securities
You will pay no capital gains tax on the donated securities and will receive a tax receipt for their full value.
Establish a Charitable Life Annuity
You will continue to receive a lifetime income from the donated assets for yourself, or for you and your spouse. Much of the annuity cash flow is tax-free and you’ll receive a charitable receipt for a portion of the donations based on the amount of annuity income you receive and your life expectancy.
Establish a Private Foundation
If your donation is very substantial, this option allows your name or family’s name to be permanently associated with the causes you’ve chosen.
Your professional advisor will help you establish a planned giving strategy that makes the most of your philanthropy for your charities and for you.
This column, written and published by Investors Group Financial Services Inc. (in Quebec - a Financial Services Firm) and Investors Group Securities Inc (in Quebec, a firm in Financial Planning) presents general information only and is not a solicitation to buy or sell any investments. Contact your own advisor for specific advice about your circumstances. For more information about this topic please contact your Investors Group Consultant.
Stephanie Carter, Associate Consultant of Carter & Associates Private Wealth Management 249 Josephine St., Box 360, Wingham, ON N0G 2W0 T: 519.357.2283 | C: 519.500.7609 | F: 519.357.4508 | TF: 877.722.5544 [email protected]
Paul Vandendool, Senior Consultant of Investors Group Financial Services Inc. 8 Huron St., Box 10, Clinton, ON N0M 1L0 T: 519-606-8000 | F: 519-679-6331 [email protected]
Dawn Bonneau, Associate Consultant of Investors Group Financial Services Inc. 8 Huron St., Box 10, Clinton, ON N0M 1L0 T: 519-606-8000 | F: 519-679-6331 [email protected]
Dwayne LaPorte, Associate Consultant of Investors Group Financial Services Inc. 8 Huron St., Box 10, Clinton, ON N0M 1L0 T: 519-606-8000 | F: 519-679-6331 [email protected]
Kristen Steeper, Associate Consultant of Investors Group Financial Services Inc. 254 Pall Mall Street, Suite 100, London, ON N6A 5P6 T: 519-679-8993 ext. 656 [email protected]