Articles & Cases

Do you have a will to support your favourite Canadian charity.

September 12, 2005

Canadians are generous and donate billions of dollars each year to charity. They also spend countless hours volunteering for causes that they care passionately about.

Many Canadians would like to make a large charitable donation but are concerned that if they give too much to charity during their lifetime that they may not have sufficient income and capital to support themselves, or pay for unexpected expenses, during their lifetime. Consequently they are worried they will have to rely on family or others to support them.

One way of avoiding this conundrum is to place a bequest in your will, leaving funds to your favourite charity. Bequests under a will are flexible and revocable as long as you are alive and of sound mind. The gift only takes place after your death. It is a final act that creates a meaningful and positive legacy.

If you die in Ontario without a will then the Succession Law Reform Act determines how your estate is divided and charities are not part of the formula and consequently your favourite charities cannot receive any benefit when there is no will.

One further benefit of including a bequest in a will is that the estate often has taxes owing and the tax credit received from the recipient charity can be used to offset taxes, if any, that your estate would otherwise have to pay on death.

Leaving a bequest in a will is one of the simplest and most effective ways to make a real difference in this world. It is easy to understand and easy to implement.

Bequests can be specific, contingent, or residual or a combination thereof. Specific includes giving a certain dollar amount or a particular asset such as your Bell stock. Contingent can include only giving the gift if certain events occur such as your spouses predecease you. Residual bequest can be a percentage of the remainder of your estate or your whole estate, after debts are paid.

Consider discussing with your lawyer or financial advisors your charitable interests and how they can be included in your estate planning.

For further information on this subject or any other estate planning issues please contact Mark Blumberg at mark@blumbergs.ca or 416-361-1982.