Each year countless Canadians leave a portion of their assets to causes that are important to them. Many of them do so by making a charitable gift in their will. Why are these kinds of gifts increasing in popularity?
One of the main reasons is that creating a gift in your will to a charitable entity allows you to make the kind of donation that may not have been possible during your lifetime. It’s an area of philanthropy that offers each of us the opportunity to make a significant difference to the causes we care about, to give back, to express our gratitude.
If you are like most Canadians, your wealth is tied up in assets like your home and retirement savings. Putting a gift in your will has no impact on your current cash flow or your lifestyle today. It’s also one of the most efficient ways to give as it can reduce, or even eliminate, the future tax burden on your beneficiaries, since your estate will receive a tax receipt for your gift.
A charitable gift in a will can be made at any time and for any amount. Because a bequest is revocable, it allows you to be flexible; should you change your mind, you can change your will.
It’s simple and easy to arrange – if you have a will you can have a charitable bequest in your will. With the help of a lawyer, and advice from your financial planner if necessary, adding a bequest generally requires little time and effort. Regardless of its type or size, each legacy gift is important to TCS.
For Trinity College School, these kinds of gifts can be the key to our long-term sustainability. Many endowments have been created from legacy gifts, and endowments ensure that there’s a flow of income to sustain services if other sources of revenue are reduced.
So how can you ensure that your gift will accomplish all that was originally intended and keep the real value of the gift intact? One solution is to create a residual bequest in your will — a gift of a percentage of the residue of your estate after taxes, administrative expenses, and specific bequests have been accounted for. The value fluctuates with the value of your estate without taking away amounts intended for loved ones.
As the popularity of legacy giving grows, gifts in will are becoming an entrenched part of our country’s philanthropic tradition. If a bequest to TCS is something you are considering we would be honoured to discuss it with you.
