Bequests
The most common type of planned gift is a charitable bequest made in a Will. A bequest can take the form of cash, securities, asset, donation of all or residue of the estate.
Benefits:
Charitable receipts up to 100% of the donor’s net income can be claimed as a charitable donation in the year of death (and preceding year, if necessary). A charitable bequest can produce a considerable tax savings.
Charitable Gift Annuity
Allows a donor to make an irrevocable donation of cash or investments to a charity and at the same time provides a guaranteed fixed income to the donor for life. The key with a charitable gift annuity is determining the amount of after-tax income you require.
Benefits:
An immediate tax receipt is available for the portion of the gift that is donated to Hamilton Health Sciences. The payments are fixed for life, and depending on the age, a substantial portion of the income may be tax-free. A charitable gift annuity avoids probate taxes to the estate upon death.
Donation of Life Insurance
Life insurance can be an excellent vehicle for charitable giving. Charitable donations can be made through an existing or new life insurance policy. This can be done one of three ways: 1) donating an existing life insurance policy – name Hamilton Health Sciences Foundation as the owner and irrevocable beneficiary of the policy or 2) purchase a new policy designating Hamilton Health Sciences Foundation as the owner and irrevocable beneficiary and 3) donate a policy through your will naming Hamilton Health Sciences Foundation as beneficiary.
Benefits:
- Option 1- you may be eligible for a tax credit for the donation of an insurance policy, provided the charity is the owner and irrevocable beneficiary of the policy at the time of the donation.
- Option 2 – you will receive a tax receipt for your policy annual premium payments and Hamilton Health Sciences Foundation will receive the life insurance proceeds for that policy upon death.
- Option 3 – upon death, your estate will receive a tax receipt for the value of the life insurance policy.
Donation of RRSPs and RRIFs
Many people have significant assets in their RRSP’s and RRIF’s. Naming your spouse as the designated beneficiary of those plans will defer the tax liability. However, on death of the surviving spouse, the full proceeds of the RRSP/RRIF will be taxed as income in the year of death. In this instance, naming a charity such as Hamilton Health Sciences Foundation as the beneficiary will offset the tax and will eliminate the probate fees related to the estate plan.
Benefits:
Your estate will receive a donation receipt for the full amount of the gift. You will save probate fees and any assets that pass directly to the beneficiary without probate will remain private and confidential unlike those distributed through a will.
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