There are several ways to leave a legacy for future generations, while making the best use of your assets and maximizing your taxable benefits.
Gift Options to Consider:
Giving Through Your Will
A bequest is a direction in your will that a certain sum of money, a particular financial asset, or a portion of the estate is to be given to Children’s Hearing & Speech Centre of BC. A bequest made to the Centre generates a tax credit that offsets the tax otherwise payable on up to 100 per cent of your net income in the year of death. Unused credits can be carried back one year. These credits may result in significant income tax savings and increase your net estate.
You can make Children’s Hearing & Speech Centre of BC the beneficiary of an existing or new life insurance policy. Giving life insurance is a way of making a significant gift without depleting your estate. At the end of your lifetime, the policy proceeds will be paid by the insurance company directly to the Centre. Depending on how the policy is structured, you may receive a tax benefit during your lifetime or your estate will receive the benefit.
Transfer of Publicly Traded Securities
Donating securities is an effective way to give. If you own publicly traded securities that have increased in value and you decide to sell them, 50 per cent of the capital gain is taxable. However, if you donate these securities “in kind” to Children’s Hearing & Speech Centre of BC, no tax is payable on the capital gain. The resulting tax credit from the donation of the securities will reduce taxes payable on other income. Making a gift of publicly traded securities is easy to do.
You can name Children’s Hearing & Speech Centre of BC as the direct beneficiary of the proceeds of your RRSP or RRIF, or you can make a gift of the proceeds from your RRSP or RRIF to the Centre in your will. The resulting tax credit may be used to offset the tax payable on the redemption of the proceeds of the retirement plan.
Charitable Remainder Trust
This option enables you to transfer some assets into a Trust, retain life income from the assets in the trust, and designate Children’s Hearing & Speech Centre of BC to receive an immediate tax receipt for the value of the remainder interest in the trust, enabling you to receive tax savings now without affecting your quality of life.
An endowment is a charitable investment fund where the capital is permanently invested and provides a steady and dependable source of income each year to Children’s Hearing &Speech Centre of BC. An endowment may be funded with an initial gift of $25,000 or more and added to during your lifetime by you, your family or friends, or through your estate.