Other legacy gift giving options to Consider
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Gifts of life insurance can be a practical way to leave UNICEF a substantial gift for the future. It is best to talk to your Financial Adviser to determine which type of life insurance gift is right for you. You may like to designate UNICEF as a beneficiary on a new or existing policy, or transfer the ownership of your policy to UNICEF directly with a pledge to pay the premiums each year. When you designate UNICEF as beneficiary your estate benefits from a tax deduction in the year of death, and /or the year preceding. Alternatively if you transfer your policy and name UNICEF as the policy holder, you may receive tax credits annually on the premiums paid.
- To make a change to your current life insurance policy to allow for UNICEF to be a primary, jointly shared, or contingent beneficiary. Simply ask your insurance company for a Change-of-Beneficiary Form.
Registered Retirement Savings Plans (RRSPs)/ Registered Retirement Income Funds (RRIFs)
Depending on your investment portfolio, retirement assets can often be very heavily taxed when withdrawn. Should sufficient alternative funds be available for your retirement years, UNICEF could be named as the direct beneficiary of your RRSP/RRIF assets (except for in Quebec where the beneficiary must be an individual). This would allow you to obtain full tax benefits without having to subject the funds to probate.
You could also simply gift UNICEF your RRSP/RIFF proceeds through your Will. A donation tax receipt would then used to offset taxes on your final tax return, and/ or the year preceding.
- Designated gifts of retirement assets are easy to set-up. All that is required is to contact your Investment Advisor to have the beneficiary information updated.
CHARITABLE REMAINDER TRUSTS (CRT)
A Charitable Remainder Trust (CRT) allows you to secure a charitable gift for the future, while allowing you to retain the income interest on your assets throughout your life.
Charitable remainder trusts are established by transferring investments to a trustee who will manage the trust account during your lifetime and provide you with income from the investment, such as dividends and interest. Upon your death, the trustee is required to donate the capital of the investment to UNICEF to ensure your charitable wishes are carried out. You could also give a life interest in the charitable remainder trust to someone else, such as your spouse, with the capital being gifted only after your spouse’s death.
- The advantage of a charitable remainder trust is that you may receive a charitable donation tax receipt at the time the trust is established based on the calculation of the fair market value of the residual Interest that belongs to the charity. Gifts made through charitable remainder trusts are irrevocable with the residual interest always being secured for charitable purpose.
REINSURED CHARITABLE GIFT ANNUITIES
A charitable gift annuity is a financial product that is purchased through a life insurance company. It allows you to make a charitable gift today, while providing you with a guaranteed fixed income for the rest of your life, or a specified number of years.
With charitable gift annuities, a donation receipt can be issued for the gift portion retained by the charity after the purchase cost of the annuity. This can be used to offset taxes payable in the short term, and save estate probate fees later.
- Charitable gift annuities are often beneficial to older Canadians as they represent safe and guaranteed investment and income.
GIFTS OF SECURITIES
Donating publicly traded stocks, bonds, mutual funds or other securities is a tax-smart way to support UNICEF Canada while enhancing your charitable gift. By donating publicly traded securities, you eliminate the capital gains tax that would be payable if you were to first sell the stock, and then donate the proceeds.
Donating securities is easy! The simplest way to make your gift of stock or securities is to have them electronically transferred from your brokerage account to UNICEF Canada’s brokerage account. You will receive a receipt for income tax purposes for the full appreciated value of your securities on the day they are received—similar to when you donate cash gifts.
- IMPORTANT: All gifts of publicly traded securities, either being gifted through your estate plan’s or if being donated today, should be designated directly to UNICEF Canada so that the full value of the appreciated investment obtains the capital gains exemption.
The information provided is general in nature and is not intended as a substitute for professional advice. UNICEF Canada encourages all donors who are planning a legacy gift to seek independent legal and financial council.