Be a Super Hero! - Leave A Legacy

Overview

The most common type of planned gift is a charitable bequest in a person’s Will.  However, Canadians are realizing that there are a variety of ways to give a charitable gift, they include:

Will Bequests – an easy way to reduce estate taxes and may increase inheritances to your loved ones.

Publicly Traded Securities – double the tax savings by eliminating capital gains tax owed.

Registered Assets – another way to significantly reduce the taxes owed by your estate.

Major Gifts – find out how a gift of $10,000 or more will impact our programs and services.

Some of the many benefits of making a planned gift to the Alzheimer Society include:

• Substantial tax advantages under current laws.
• Your giving can be tailored to your personal and financial circumstances.
• Your donation is made from assets, not current income.
• Gifts are planned today for distribution as some time in the future.
• Most of the gifts involve planning, however they are easy to arrange.

The Alzheimer Society strongly recommends that you seek professional advice to ensure your financial goals are considered, your tax situation reviewed, and your planned gift is tailored to your circumstances. 

Your financial or estate advisor will be happy to help you complete your gift. We can have a conversation with you and your advisors to determine if a planned gift fits your desires, financial objectives, family needs, tax situation and our funding objectives.   All discussions are confidential and will not obligate you to make a gift.

Charitable Will Bequests

Many Canadians support charitable organizations through future gifts from their estates. A Charitable Will Bequest is a direction in your Will that instructs your Executor(s)/Trustee(s) to leave one or more of your assets to a charitable organization. 

A charitable Will bequest is a meaningful way to reduce your taxes, increase inheritances to your loved ones and make a difference in the world.

A Charitable Will Bequest is a direction in your Will that instructs your Executor/Trustee to leave one or more of your assets to a charitable organization(s). 

It is an easy way to support the Alzheimer Society while helping you achieve significant tax savings for your estate, thereby reducing or eliminating your income tax liability in the year of death.

The Benefits to You

Convenient –   Can be made if you are over 18 years of age and can be for any amount you want.

Simple – Instruct your lawyer to include a bequest to the Alzheimer Society in your Will or codicil.

Cost-effective – There are no extra out-of-pocket costs.  Your present income will not decrease.

Tax Relief – A charitable Will Bequest is a highly effective way to reduce estate taxes.

Tax Planning – We will issue a charitable tax receipt for the full value of your bequest.  Your estate will use this receipt to reduce the tax payable on your final tax return.  If your bequest exceeds 100% of your net income in the year of your death, the excess may be carried back to the previous tax year and the taxes already paid will be refunded to your estate.

Flexible – Your bequest can be for a specific amount, a percentage of your estate, or the residue of your estate – that is a gift after your debts have been paid and other bequests made.   

Control – You retain use of the assets for the duration of your lifetime.

Peace of Mind – You can make changes to your Will at any time.

Satisfaction – Legacy gifts are made for personal reasons in addition to ensuring that the Alzheimer Society continues leading the fight against Alzheimer disease and related dementias: via its elite researchers, quality of life improvement, and support programs for caregivers.  As well, your bequest can create a lasting memorial for you, your family or anyone you may wish to honour.

The Alzheimer Society strongly recommends that you seek professional advice to ensure your financial goals are considered, your tax situation reviewed, and your planned gift is tailored to your circumstances. 

Your financial or estate advisor will be happy to help you complete your gift. We can have a conversation with you and your advisors to determine if a planned gift fits your desires, financial objectives, family needs, tax situation and our funding objectives.   All discussions are confidential and will not obligate you to make a gift. 

Publicly Traded Securities and Mutual Funds

A few years ago, the federal government eliminated the capital gains tax on charitable 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, 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 donate from savings rather than cash flow.

The Benefits to You

• Opportunity – An opportunity to make a significant gift.
• Tax Advantages – By donating your appreciated securities or mutual funds directly to the Alzheimer Society of Ontario you eliminate your capital gains tax bill.
• Reduced Brokerage Fees – Many brokerage houses forego fees for charitable transactions.
• Simple and Convenient – Securities are easy to transfer.  Your broker transfers the shares from your account to the Alzheimer Society’s brokerage account.  The date of your donation will be the date the securities are deposited into our brokerage account.
• Recognition – Your gift can be honoured during your lifetime.

How does it work?

A donation receipt is issued for the fair market value of the security on the date of transfer to our brokerage account.  The securities must be transferred to the Alzheimer Society and not be sold by you, the donor.

NOTE: The gift will not qualify for the capital gains tax elimination if the securities are sold, and the cash then gifted to a charity.

Guidelines for Transferring Assets

CAUTION: When transferring listed securities ALWAYS ensure that the securities are transferred directly to the registered charity. The securities must be transferred and not be sold by you, the donor. The gift will not qualify for the capital gains tax elimination if the securities are sold, and the cash then gifted to a charity.

The Alzheimer Society strongly recommends that you seek professional advice to ensure your financial goals are considered, your tax situation reviewed, and your planned gift is tailored to your circumstances. 

Your financial or estate advisor will be happy to help you complete your gift. We can have a conversation with you and your advisors to determine if a planned gift fits your desires, financial objectives, family needs, tax situation and our funding objectives. All discussions are confidential and will not obligate you to make a gift.

Registered Savings Plans (RRSPs and RRIFs)

Many Canadians have savings in Registered Retirement Savings Plans (RRSP), but RRSPs and Registered Retirement Income Funds (RRIFs) 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.

If you die without a surviving spouse or qualifying dependents, the full remaining value of your RRSP or RRIF is added to your income in the year of death, and your estate must pay the taxes. If your RRSP or RRIF has a registered charity as the direct beneficiary, your estate will receive a donation receipt for the entire value of the plan. The credit arising from this donation will offset the tax liability. 

As a result, the entire value inside an RRSP or RRIF can be given to a registered charity in the year of death with no tax implications. A gift of a RRSP or RRIF may enable you to fulfill dual goals of supporting the Alzheimer Society while reducing the amount of taxes that your estate owes to Canada Revenue Agency.   

The Benefits to You

• Tax Advantages – Tax-effective means of supporting the Alzheimer Society.  Your estate may claim gifts in the years of your death equal to 100% of your net income in that year and the preceding year.  RRSPs and RRIFs become fully taxable as income in the year of death, usually at the highest marginal tax rate, unless the funds can be rolled over to a surviving spouse or a dependant child.
• Control – You retain the use of the investment for the duration of your lifetime.
• Simple – Easy to arrange.  Simply ask your financial institution to change the beneficiary designation to the Alzheimer Society.
• Flexible – The designation is revocable and can be changed if your financial circumstances alter.
• Cost Effective – There are no extra out-of-pocket costs.
• Eliminates Probate, Legal & Executor Fees – Your gift will not be subject to probate costs or delays in settlement. The full proceeds are payable to the charity upon your death.
• Peace of Mind – You can plan, arrange, and announce the gift yourself and you will know that it will occur just as planned.
• Control – Not a matter of public record allowing you to remain anonymous. And unlike a Will, the gift cannot be contested.
• Memorialize – Your bequest can create a lasting memorial for you, your family or anyone you may wish to honour.
• Opportunity – An opportunity to make a significant gift.
• Recognition – Your gift can be honoured during your lifetime.

There are two ways to donate the proceeds of an RRSP or RRIF:

• You can name the Alzheimer Society as the direct beneficiary of your RRSP or RRIF. Upon your death the proceeds will be paid directly to us without going through probate.
• You can name your estate as the beneficiary of your RRSP or RRIF and leave instructions in your Will to donate all or part of your RRSP or RRIF to the Alzheimer Society.  You may specify a percentage of the RRSP or RRIF or a specific dollar amount to be donated. The donation qualifies for the charitable Will bequest donation tax credit for up to 100% of income in the year of death and in the year preceding
  • NOTE: The trustee of your RRSP or RRIF will withhold taxes and probate will apply when choosing this option.

The Alzheimer Society strongly recommends that you seek professional advice to ensure your financial goals are considered, your tax situation reviewed, and your planned gift is tailored to your circumstances. 

Your financial or estate advisor will be happy to help you complete your gift. We can have a conversation with you and your advisors to determine if a planned gift fits your desires, financial objectives, family needs, tax situation and our funding objectives. All discussions are confidential and will not obligate you to make a gift.

Charitable Bequest Language

Specific, unrestricted:

I give, devise and bequeath to the Alzheimer Society of Peterborough, Kawartha Lakes, Northumberland & Haliburton the sum of $ _______ to be used for any purpose(s) approved by the Board of Directors of the Alzheimer Society of Peterborough, Kawartha Lakes, Northumberland & Haliburton.

Specific, restricted with escape clause:

I give, devise and bequeath to the Alzheimer Society of Peterborough, Kawartha Lakes, Northumberland & Haliburton the sum of $ _______ to be used for the following purpose(s)_______ .
If the Alzheimer Society of Peterborough, Kawartha Lakes, Northumberland & Haliburton is unable to apply all or part of these funds for the specific purpose(s) stated herein, the balance of this bequest not so extended may be used for any purpose approved by the Board of Directors of the Alzheimer Society of Peterborough, Kawartha Lakes, Northumberland & Haliburton.

General % unrestricted

I give, devise and bequeath to the Alzheimer Society of Peterborough, Kawartha Lakes, Northumberland & Haliburton _______ % of the residue of my estate to be used for any purpose(s) approved by the Board of Directors of the Alzheimer Society of Peterborough, Kawartha Lakes, Northumberland & Haliburton.

General %, restricted with escape clause: 

I give, devise and bequeath to the Alzheimer Society of Peterborough, Kawartha Lakes, Northumberland & Haliburton, _______% of my estate to be used for the following purpose(s) _______. If the Alzheimer Society of Peterborough, Kawartha Lakes, Northumberland & Haliburton is unable to apply all or part of these funds for the specific purpose(s) stated herein, the balance of this bequest not so extended may be used for any purpose(s) approved by the Board of Directors of the Alzheimer Society of Peterborough, Kawartha Lakes, Northumberland & Haliburton.

Residual contingent trust:

Upon the death of the survivor of my (wife, husband, daughter, son etc.) here named, _______, I direct my trustee to transfer and deliver the balance of the residue of my Estate, including any undistributed income to
the Alzheimer Society of Peterborough, Kawartha Lakes, Northumberland & Haliburton to be used for any purpose(s) approved by the Board of Directors of the Alzheimer Society of Peterborough, Kawartha Lakes, Northumberland & Haliburton.

Charitable Clause with instructions to Trustee/Executor re: capital gains elimination: 

I give, devise and bequeath an undetermined amount of my estate to be divided equally to the list of charities that I supported in my lifetime. See Letter of Direction attached for list. These charities shall receive assets such as publicly traded securities and mutual funds in order to reduce the capital gains owing against my estate. I further instruct my Trustee to calculate the amount of such donations to negate any capital gains owing within the rules and regulations determined by the Canada Revenue Agency.