Among all the plans we envision for the New Year, why not resolve to make a real difference in 2015 for people in need? It is possible to make a major impact on generations to come by deciding on a legacy now. Simply choose a cause that you're passionate about and then take the steps to make it happen.
If creating a legacy this year sounds like the right idea, your gift can originate in a number of ways, such as these:
A Gift in Your Will: This allows you to make a larger donation than would be possible during your lifetime. By naming a charity as a beneficiary in your will, you can give a percentage of your estate, a sum of money, a gift of property, or a gift of securities. Your estate receives a tax receipt for the value of the gift, which may reduce taxes payable on your estate.
Gifts of Securities: By donating appreciated stocks, mutual funds, stock options or flow-through shares, you pay no tax on the capital gains, receive a tax receipt for the fair market value of the securities and reduce your taxes. It gives you a cost-effective opportunity to transform a past investment into immediate and significant support.
Gifts of Life Insurance: This type of gift allows you to make a large donation at a relatively low cost. You can simply designate the charity of your choice as a beneficiary. Or you may designate your charity of choice as owner and beneficiary of a new or existing policy to claim each future premium paid as a tax deductible donation, or give the charity a paid-up life insurance policy to receive an immediate tax receipt for its fair market value.
Gifts of RRSPs/RRIFs: Retirement funds are one of the best ways to grow wealth during your lifetime, but one of the worst ways to transfer wealth to the next generation, as they are among your most heavily-taxed assets. By naming a charity as a beneficiary of your registered plans, you can make a gift which will benefit your charity of choice and other beneficiaries in your estate, as the tax receipt will reduce taxes owed on the estate.
