Types of planned gifts
The Alzheimer Society of Oxford understands that donors consider estate and gift planning to be a strictly confidential matter. See our Privacy page for more information.
Information about these options is not intended as specific financial planning or legal advice. The Alzheimer Society of Oxford strongly recommends that you consult your legal advisors, financial planners and family members when considering a planned gift to ensure your financial goals are considered, your tax situation reviewed, and your planned gift is tailored to your circumstances.
For further information, please request our Planned Giving Fact Sheets and Will Planning Guide. Contact Shelley Green at 519-421-2466 or by email [email protected].
Just as you’ve supported the Alzheimer Society of Oxford throughout your lifetime, you can include a provision for us in your Will. Your gift will continue your support of our mission to find a cure for Alzheimer’s disease and other dementias, and support those living with this devastating disease.
Many Canadians own some type of life insurance as it allows for the accumulation of tax-sheltered funds and provides heirs with quick access to financial resources. A gift of life insurance may be appealing if you are under 50 and in good health, would like to make a large gift for a relatively small financial outlay, and your family no longer requires the insurance proceeds.
How does a gift of life insurance work?
- You can transfer the ownership and beneficiary designation of an existing permanent policy that has finished serving its original purpose. This designation is irrevocable and cannot be changed.
A charitable tax receipt will be issued for the worth of the policy at the time of transfer. Any continued premium payments also qualify for a charitable tax receipt. Please note that there are tax advantages to retaining existing policies. The Alzheimer Society of Ontario strongly recommends that you discuss this matter with your insurance specialist before any transfer takes place.
- You can purchase a new life insurance policy. After one premium payment, you name the Alzheimer Society of Oxford as the owner and beneficiary. You continue to pay the premiums and receive a charitable tax receipt for those payments. Again, this designation is irrevocable and cannot be changed.
- You can name the Alzheimer Society of Oxford as the beneficiary on your individual or group life insurance. You retain ownership of the policy. You can change the beneficiary designation at any time. You will not receive a charitable tax receipt for any premiums paid during your lifetime. Your estate will receive a charitable tax receipt for the value of the policy proceeds paid to the Alzheimer Society of Oxford. If you are a salaried employee and have a benefit plan that has a death benefit component, consider naming the Alzheimer Society of Oxford as the beneficiary; it is any easy way to make a planned gift.
Many Canadians have savings in Registered Retirement Savings Plans (RRSP), but RRSPs and RRIFs (Registered Retirement Income Fund) often create large tax liabilities in the year of death since the entire amount of the plan is included in your income in one year. Arranging for a donation of all or a percentage of your RRSP or RRIF to the Alzheimer Society of Oxford upon your death is an effective way to reduce the taxes payable by your estate.
If you’d like more information about how to take full advantage of gifts of registered plans (RRSPs and RRIFs), contact your insurance agent, accountant or financial advisor.
A charitable gift annuity can benefit both you and the Alzheimer Society of Oxford. Depending on your age, a charitable annuity allows you to save tax, enjoy a guaranteed income for life and give a gift today. This type of gift might be appealing if you:
• Are over the age of 65
• Have accumulated wealth and do not need this portion of your capital to leave for your surviving spouse or heirs
• Are concerned about the amount of tax you pay on your interest-bearing investments
• Wish to increase your after-tax disposable income
• Like the security of fixed, guaranteed income
• Would like worry-free management of your investments.
How does a charitable gift annuity work?
A charitable gift annuity is a contractual arrangement with a commercial annuity provider. It will provide you with a tax-preferred annual income guaranteed for life or a specific number of years. Charitable gift annuities are structured in the same way as regular commercial annuities, but they offer distinct advantages due to a charity’s tax-free status.
Charitable remainder trust
A charitable remainder trust is a way of giving assets to the Alzheimer Society of Oxford through a trust agreement. A charitable remainder trust can be established by contributing bonds, stock securities, mutual funds or real estate to a trustee who holds and manages it. You may choose a charitable remainder trust because you have an asset that you would eventually like to give to us, but you need the income it now provides or you do not wish to part with your asset right now.
Gifts of residual interest
Gifts of residual interest refer to an arrangement under which property, such as a home or farm, is irrevocably deeded to the Alzheimer Society of Oxford. Once the asset has been irrevocably transferred to the Alzheimer Society of Oxford, you are entitled to a tax receipt for the present value of the residual interest. This tax receipt is based on a Canada Revenue Agency formula. You then retain the use of the property for your lifetime or for a predetermined period. The Alzheimer Society of Oxford is free to make use of the property or sell it after the specified time period or after you pass away.
This type of gift may appeal to you if you:
• Are over age 65
• Wish to give us a gift through a Will bequest, but would like the tax advantages now
• Do not want to change your standard of living but would like to make a substantial gift now.
Securities and mutual funds
A few years ago, the Federal government eliminated the capital gains tax on gifts of publicly traded securities and mutual funds. If you own stocks or mutual funds that have grown in value, you will face a tax bill when you sell them. By donating them directly to the Alzheimer Society of Oxford, you can eliminate your tax bill and make a significant gift at the same time. This giving option is attractive if your investments have grown in value and you wish to make a donation from savings rather than cash flow.