Many great ways to leave a legacy
To ensure your gift to BC Children’s Hospital Foundation is appropriate for your circumstances, we’ve provided the following materials to help you get started.
It can be a certain percentage or a specific amount of, or a particular asset in your estate. And it is easy to do. It is as simple as a clause in a Will or a codicil. Use our sample Will clauses. We encourage you to seek advice from your professional advisor when preparing a future legacy gift to BC Children’s Hospital Foundation. The information we provide is for your benefit, as well as that of your advisor and is intended to supplement professional legal or financial advice.
Legal Name: British Columbia’s Children’s Hospital Foundation
Charitable Business No. 118852433RR0001
What are the benefits of a Will gift to BC Children’s Hospital Foundation
- Peace of mind that your plan is recorded
- Joy in knowing your future legacy will help heal kids
- Lessen the taxes due by the credit a charitable tax receipt generates
Donating registered financial accounts is one of the easiest, and tax-effective ways to support pediatric health at BC Children’s Hospital. Registered accounts include Tax Free Saving Accounts (TFSA), Registered Retirement Savings Plans (RRSP), Registered Retirement Income Funds (RRIF), Locked in Retirement Accounts (LIRA), Life Income Funds (LIF), and other deferred pension plans.
The total value of your registered retirement accounts (except your TSFA) must be reported as income in your final return in the year of your passing. This income is fully taxable unless the funds can be rolled over to a surviving spouse or dependent child. If this is not possible, these assets make ideal donations and can benefit your estate in three ways:
- By naming a charity as a direct beneficiary of your TFSA, RRSP, RRIF or other deferred pension plan, you will avoid paying probate fees on those assets.
- You will need to complete designation forms provided by your financial institution.
- The tax receipt issued can also offset taxes owed on other assets within your estate. This means more of your estate goes to something important to you.
How do I make a gift of registered financial accounts to BC Children’s Hospital Foundation?
It is as easy as filling in your financial institution or plan holder’s form.
Name British Columbia’s Children’s Hospital Foundation as the direct beneficiary of the proceeds of your TFSA, RRSP, RRIF, LIRA, LIF, or of your deferred pension plan by filling in a beneficiary form at your financial institution.
The proceeds will be paid directly to the Foundation by the financial institution.
Gifting life insurance is a way of creating a future legacy while preserving your estate for your loved ones. Life insurance proceeds that are designated to charity do not form part of your estate, consequently do not attract probate or administration fees.
Gifts of certain types of current or paid up life insurance policies may be made by transferring ownership. You would receive a current tax receipt for the fair market value of the policy at time of your donation.*
You are also able to retain ownership of your life insurance policy, and simply include British Columbia’s Children’s Hospital Foundation as a beneficiary.
*Term insurance is not currently included.
Can I donate a new policy?
Before you decide to donate or purchase a Life Insurance policy it would be in your best interest to contact your financial advisor and our Gift and Estate Planning team. Working with you, together, we can discuss the gift of insurance that best suits YOUR estate planning choices.
If you are making us the beneficiary only, please ensure you use our legal name: British Columbia’s Children’s Hospital Foundation and contact your insurance company to update the beneficiary designation formally. If your policy is not designated or is designated to your estate, it will form part of the estate assets.
Life Insurance [PDF]
A property gift allows you to donate real estate, shares in privately-held corporations, royalty interests, works of art, jewelry, or other property to BC Children’s Hospital Foundation and receive future or immediate tax benefits.
Prior to accepting the gift and issuing a receipt for income tax purposes, BC Children’s Hospital Foundation may require a formal valuation by a qualified third-party appraiser to determine the fair market value of the property or shares. Gifts of property typically require time for discussion and can also require specific documentation. We recommend contacting us as soon as possible.
Please discuss your plans to donate these gifts with the Foundation, which will assess its ability to accept each of these gifts on a case-by-case basis.
Should your house meet all the requirements of a principal residence, it will be exempt from capital gains taxes payable. Your house may be gifted specifically in your Will. If you prefer your executor to manage the sale of your house with all other assets, you may like to indicate that the value of the sale is gifted, or simply provide for your charity to be the residual beneficiary of your overall estate.
A charitable tax receipt for your house would provide a significant reduction to any taxes payable.
The gift of your house, or its proceeds, is a substantial gift which would make a significant difference to the needs of our hospital.
You may like to gift your residence in lifetime and still enjoy living in it—please contact us to discuss this option that provides you a significant tax benefit plus the security of knowing your home is still home.
Children may want less or more involvement with a family cabin, and the best solution for family relationships may be to gift the property— this may be best in lifetime or as part of your estate.
If you plan to donate your cabin to BC Children’s Hospital Foundation in lifetime, you can reduce the capital gains taxes payable arising from the deemed disposition to you by applying your charitable tax receipt. Please contact us to discuss this option.
Donating a cabin that is no longer used can avoid inconvenience that on-going maintenance brings.
PLEASE NOTE: The information on this page can help facilitate discussions between you and your advisor. It is not intended as legal or financial advice. We encourage you to consult a qualified professional.
Donating securities is an effective way to give. If you own publicly traded securities that have increased in value and you decide to sell them, currently 50 per cent of the capital gain is taxable.
However, if you donate these securities ‘in kind’ to BC Children’s Hospital Foundation this tax is avoided, and the resulting tax credit from the donation of the securities will reduce the taxes payable on other income. The securities are electronically transferred easily with the help of our broker.
Please discuss it with your financial advisor or broker and use the securities transfer donation form.
Trusts can be effective, and accomplish your legacy goals, however some trust options may be complex. Complexities may include: the needs of your family; your wishes; and the types of trusts available to you.
Please reach out to the Gift & Estate Planning team for pointers to share with your lawyer. Contact us.
A round-up of tools
Whether you’re looking for a handy form, insider tips or expert perspectives, we’ve got you covered.
Legacy is a Team Approach
Advisors from various professions bring different skill sets and knowledge. Your best estate plan will include more than one advisor, each bringing a perspective for legal, taxation, estate and wealth planning needs that will support your unique family situation and fulfill your goals.
Choose your advisor
Carefully choose each professional who has proven experience in the service you need. Some advisors are generalists and might overlook an important point that a specialist practitioner would be familiar with. Other advisors may be learning about your specific topics while at the same time advising you on those matters.
Create a plan
Frequently, advisors who have proven experience also have a network of trusted professionals who can provide specific advice for your circumstances and ensure a wholistic plan is created for you that maximizes your goals, leaves no unintended consequences, and provides peace of mind.
Get integrated advice
Share information among your advisors – without all your advisors knowing your full plan, you may not receive integrated advice and your estate plan may cost you or your loved ones more in the long run.
Gift & Estate Planning Team
Your team also includes the Gift & Estate Planning team at the Foundation. We are happy to share tips and resources that can facilitate a more fulsome discussion with your advisors. An unbiased perspective is intended to help point you to explore options or questions that may not have come to mind.
Your professional advisor team
As you plan your legacy gift, you’ll have a dedicated team standing with you to offer expert advice along the way. Here are some tips to consider when working with professional advisors and executors.
Professional advisor tips
The lawyer you choose to craft your Will is best selected from those whose main focus is Wills and estate planning, rather than an unrelated area of law. Examine the practitioner’s website to determine if this is a focus area, or one of many, or one that is occasionally practiced.
Should your estate plan be complicated, be sure to keep your lawyer up to date on changes to your wishes or situation. Dividing your legal needs among several law firms may have unintended results or oversights.
Make your own Will detailed and specific to you and consider the decisions of a surviving spouse where there are beneficiaries you wish your estate to take care of.
Financial advisors may be knowledgeable about the most common forms of assets that comprise an estate, and general guidelines for an estate plan. However, rules around designations, trusts, Wills, and other assets that a financial advisor includes in your financial plan, are more likely to require the relevant professional.
Notaries are helpful and usually provide a lower cost option for some Wills. Notaries can assist with Powers of Attorney and Representation Agreements.
Your accountant and tax accountant may be the same person. Ensure your tax accountant has proven experience in planning for the greatest tax reduction benefits while ensuring that the timing of your asset distribution is in tandem with legal processes and requirements. Sometimes saving tax may not be your main goal, so be sure to clarify what is most important to you and your family.
Asking the question of ‘what if’ can identify ahead of time any implications and results from your estate plan that you don’t really mean.
At times, the savings from today’s decisions may end up in higher costs for your loved ones at a time they are emotionally impacted. Working through various scenarios with specialized advisors can avoid added burden to your loved ones.
A family member such as a spouse or adult child is commonly appointed as executor. However, taking on such a big responsibility may prove difficult when grieving. A trusted friend or a professional trust company may be a good option. The key is to appoint someone you trust with the responsibilities of an executor – they must be able to competently manage your assets, keep good records, and treat all beneficiaries fairly in a timely manner.
The person you appoint may not want or be able to act as your executor due to personal circumstances; it is crucial to include an alternate executor who will take on the duties.
To lighten the burden or for additional input during decision- making, you may consider appointing co-executors to act together. Co-executors must be able to communicate and cooperate easily with each other. It is helpful to choose trusted people you know will have a good working relationship.
The executor should preferably live in the same city as you, so they have easy access to your assets and family members as well as local professional advisors who are familiar with the law in your area. This consideration will help reduce delays and travel costs. When considering an executor residing outside Canada or you have assets outside Canada, you should consult an estate lawyer and tax advisor in advance to avoid any unexpected tax consequences.
Being an executor can be demanding and time-consuming. Find an individual you know will be able to carry out the many duties involved in administering an estate, which can easily take up to two years or more. Ensure the person you want to appoint will be willing and capable to take on the role. This will prevent the likelihood of the executor renouncing the role or being replaced.
Consider what would be fair compensation for your executor. Executors are entitled to reasonable fees for their role, based on the entire value of your estate. This may be in addition to any gifts you leave for them under your Will, so think about whether that aligns with your expectations.
Legacy Learning Series: Your Will Experts
We are here for you should you have any questions pertaining to your Will or legacy giving that you would like to discuss with a member of our Gift & Estate Planning team. Please feel free to email us at firstname.lastname@example.org
*Disclaimer: The information in this recording is intended to provide general comments on legal issues. The information is not intended to provide legal advice. Viewers should seek out legal advice on issues specific to them before acting on any of the information provided in this recording.