Funds are usually bequeathed as:
- Residual amount – for example, a share or a percentage of your estate.
- Specific dollar amount or item.
- Direction for executor to donate assets in a way that reduces estate taxes.
Benefits of a bequest:
- You have use of the asset during your life.
- A tax-effective way of supporting TCS as it reduces estate taxes.
- Is revocable and can be modified if financial circumstances change.
Legal name of TCS and charitable registration number:
Our legal name is: The Trinity College School Foundation. Our Canadian charitable registration number is: 831549746RR0001.
Sample bequest wording:
“To pay to The Trinity College School Foundation ___% of the residue of my estate [or the sum of $____________]. This gift is to be used for such purposes and designs as deemed appropriate by The Trinity College School Foundation. I authorize my executor to gift the most tax burdened assets.”
If you wish to direct your gift to a specific area or for a specific purpose, please contact David Fisher ’93 at 905-885-3217 ext. 1235 or firstname.lastname@example.org for detailed bequest language.
A past parent makes a bequest to TCS for $100,000. The estate executor chooses to gift a publicly traded security valued at $100,000. The book value of the security is $50,000. Gifting the security eliminates the taxable gain, results in a $12,500 tax savings plus a $46,000 tax credit that can be used to offset taxes payable.
|Sell shares and donate cash||Donate shares directly to TCS||Sell shares and bequeath $100,000 to a loved one|
|Market value of security (a)||$100,000||$100,000||$100,000|
|Adjusted cost base||$50,000||$50,000||$50,000|
|Taxable capital gain||$25,000||$25,000||$25,000|
|Tax on capital gain (50%) (b)||$12,500||>$0||$12,500|
|Tax savings from donation tax credit (46%) (c)||$46,000||>$46,000||$0|
|Total cost of transaction (a)+(b)-(c)||$66,500||$54,000||$112,500|