Solutions for your future needs.

Book a meeting


(888) HARVEYG

 

The Joy of Planned Giving

Article Licenses: unknown
Advisor Licenses:

Compliant content provided by Adviceon® Media for educational purposes only.


shutterstock_54167626

For centuries, people have made efforts to help the less fortunate. The singer of U2, Bono, has been involved in many issues throughout the years and supports erasing Third World debt to wealthy countries. Michael Jordan is involved with a variety of charities including the Boys & Girls Club of America, UNCF/College Fund, Special Olympics and organizations that support children and families. Bill and Melinda Gates focus on areas dedicated to improving people’s lives by advancing health and learning efforts in the global community.

You do not have to be famous and wealthy to get involved — everyone can! For a small monthly, tax-advantaged donation of $25 to $100, you can help a child through an NGO such as World Vision. There are many such Non-Government Organizations (NGOs) that help people worldwide when and where disaster strikes.

Planned Giving

Planned giving raises funds through a program of arranging regular systematic donations to serve the interests of a registered charity that best suits the personal, financial and tax situation of an individual donor. Via planned-giving programs, registered charities seek to attract substantial gifts by presenting potential donors with information and advice. You can include the following is your planned-giving program: bequests, annuities, life insurance policies, and residual interests or charitable remainder trusts. Segregated funds work well because they can guarantee the invested capital (plus any growth) upon the death of a donor.

Charitable remainder trust.

A charitable remainder trust involves transferring property into a trust whereby the donor retains a life interest in the property but makes an irrevocable gift of the residual interest to a registered charity. A registered charity can issue an official donation receipt for the fair market value of the residual interest in the property at the time that the residual interest vests to the charity.

How to donate a life insurance policy to a charity.

When an individual absolutely assigns a life insurance policy to a registered charity and makes the charity the registered beneficiary of the policy, the charity can issue an official donation receipt for the cash surrender value of the policy at the time of donation and for the subsequent payment of premiums.

RRSP as an enduring property.

Under the Income Tax Act, a charitable donations tax credit can be claimed on a deceased individual’s return for a donation via a direct distribution of his or her proceeds to a qualified donee who is the designated beneficiary of a registered retirement savings (or income) plan (RRSP/RRIF), a registered retirement income fund (RRIF), or a life insurance policy. Under the Act, a gift received by a registered charity by way of direct designation is a gift of enduring property.

Donating a Registered Pension Plan (RPP).

An individual can designate a registered charity as their beneficiary of a registered pension plan. A charity can issue an official donation receipt for lump-sum pension benefits paid to the charity.

Note: Ask your Advisor if any legislation has changed this.

 


 

Publisher's Copyright & Legal Use Disclaimer

All articles are a legal copyright of Adviceon®Media and are for educational purposes only. The particulars contained herein were obtained from sources which we believe are reliable, but are not guaranteed by us and may be incomplete. This website is not deemed to be used as a solicitation in a jurisdiction where this representative is not registered. This content is not intended to provide specific personalized advice, including, without limitation, investment, insurance, financial, legal, accounting or tax advice; and any reference to facts and data provided are from various sources believed to be reliable, but we cannot guarantee they are complete or accurate; and it is intended primarily for Canadian residents only, and the information contained herein is subject to change without notice. References in this website to third party goods or services should not be regarded as an endorsement, offer or solicitation of these or any goods or services. Always consult an appropriate professional regarding your particular circumstances before making any financial decision. The information provided is general in nature and should not be relied upon as a substitute for advice in any specific situation. The publisher does not guarantee the accuracy and will not be held liable in any way for any error, or omission, or any financial decision.

Mutual Funds Disclaimer

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investment funds, including segregated fund investments. Please read the fund summary information folder prospectus before investing. Mutual Funds and/or Segregated Funds may not be guaranteed, their market value changes daily and past performance is not indicative of future results. The publisher does not guarantee the accuracy and will not be held liable in any way for any error, or omission, or any financial decision. Talk to your advisor before making any financial decision. A description of the key features of the applicable individual variable annuity contract or segregated fund is contained in the Information Folder. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. Product features are subject to change.

Life Insurance and Segregated Funds Disclaimer

Life Insurance policies vary according to contract terms. Please read any Life Insurance policy contract provided, or the segregated fund summary information folder prospectus before the time of purchase. Full details of coverage, including limitations and exclusions that apply, are set out in the policy of insurance. Commissions, trailing commissions, management fees and expenses may be associated with segregated fund investments which may not be guaranteed and their market value changes daily and past performance is not indicative of future results. A description of the key features of a life insurance policy, a segregated fund; and any applicable individual variable annuity contract is contained in information provided by the company from which it is purchased. Talk to your advisor before making any financial decision. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors. The information provided is accurate to the best of our knowledge as of the date of publication and is general in nature, intended for educational purposes only, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors. Rules and their interpretation may change, affecting the accuracy of the information.

Mutual funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc.

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This content was prepared by Adviceon® for the benefit of the advisor Harvey Garraway who is a Investment Funds Advisor at Investia Financial Services Inc. a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this presentation comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability.

 

Mutual funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc.

The particulars contained herein were obtained from sources which we believe reliable but are not guaranteed by us and may be incomplete. The opinions expressed have not been approved by and are not those of Investia Financial Services Inc. This website is not deemed to be used as a solicitation in a jurisdiction where this Investia representative is not registered.

Insurance products are provided through PPI.

Privacy Policy

Website Disclaimer

A A