– by Janice Henshaw –
Even though the winds may blow and the nights are long, the start of a new year always seems so full of hope. It can fire up our determination to set new goals, start new projects, and it can often give us the push we need to set off on new adventures.
The New Year can also be a cherished time of quiet reflection, a time to review the past and to think about our future. As we walk along the sea or relax in our favourite coffee shop, we may think about what we can do to help make our community a better place for those who follow us. What legacy can we leave behind? This is a powerful and intriguing question, because there are so many options. And what better time to explore ideas for a legacy or planned giving than now?
Some questions to ask ourselves include:
How can I take care of my loved ones?
What are my core values?
What would I like to be remembered for?
“Often a donor’s legacy gift will be very personal,” notes Victoria Foundation Director of Philanthropic Services, Sara Neely. “For example, as directed in the will of a donor upon his recent death, the Victoria Foundation created a literacy fund to support initiatives to strengthen literacy skills in our region, something very dear to this donor’s heart during his lifetime. In another case, a loyal supporter of BC Guide Dog Services left part of her estate to the Victoria Foundation for her fund supporting the organization. In gratitude, the BC Guide Dog Services named a puppy in her memory.”
According to the Canadian Association of Gift Planners (CAGP), gift giving or legacy planning takes place year round, but the largest media campaigns occur in May. CAGP’s main website is found at www.cagp-acpdp.org and it includes a link to the “Leave a Legacy” page. This website has some good information on how to start the planning process with topics such as “Why give?” “Who Gives?” “How to Give,” and “Who can Help?”
In the section “Find a Charity,” there is a list of charitable organizations with contact information. Also included is a glossary of terms that can help us to “learn the language” before we meet with a professional advisor. With all these tools, planning a legacy has never been easier!
There are tax implications in planning a legacy that need to be considered. A professional advisor can help guide us through this process and will do everything she or he can to reduce or even eliminate the estate tax that our beneficiaries will owe. Sometimes, taking a friend or relative along to a consultation can help ensure that we understand all that is being said.
“A legacy can be a valuable tool in estate planning,” confirms
Damon O’Brien, an estate solicitor with McKimm and Lott. “With proper advice, a legacy can fund worthwhile endeavours in your community, while minimizing income tax liabilities to your estate, and avoiding probate fees.” National Bank Financial Investment Advisor Viola Vanderuyt points out: “There can be significant tax benefits to an estate when including a gift to charity. This can help offset some of the tax liability on RRSPs and RRIFs or large capital gains.”
“Discussing legacy wishes with an investment advisor is wise because it can have an impact on how a portfolio and accounts are structured,” adds Viola. She notes that an advisor specializing in overall wealth management can help coordinate all these moving pieces and that “Legacy planning involves creating a definitive plan for managing your wealth while you are alive, then distributing your estate how you choose after your death, and communicating what is important to you.”
Another issue to consider is whether to give now, through a will, or both? This is a good topic to discuss with your accountant. Sometimes, the answer is clear. Yesterday I saw a young music student biking to university on a bike that was too small for him. Because it was frosty, I wore warm winter gloves. He wore latex dish gloves. Next week he’s going to find some warm gloves on his handlebars.Thinking about what it would be like to donate land, protect or create a park, purchase vital medical equipment, assist a foundation, provide scholarships to hard working students, or help families in need, will surely warm our hearts during the winter nights to come.
For more information about some of the ways that you can plan your legacy gift, and the organisations that rely on such gifts, please visit the sources below:
The Canadian Association of Gift Planners
1 888 430 9494
www.cagp-acpdp.org
The Victoria Foundation
250 381 5532
www.victoriafoundation.bc.ca
Saanich Peninsula Hospital Foundation
250 652 7531
www.sphf.ca/planned-gifts
The Mary Winspear Centre
250 656 0275
www.marywinspear.ca/get-involved/donate
Shaw Ocean Discovery Centre
250 665 7511
www.oceandiscovery.ca/donate
