GIFTS FOR TOMORROW
Planning a gift to Bide Awhile can be as simple as naming the animal shelter in your will. Or it can involve other giving options - annuities, charitable remainder trusts, gifts of residual interest, and insurance policies - that can have significant tax benefits for you now or in the future.
You have many things to consider when planning gifts of this type. Our gift planning representatives would be pleased to provide you with information on the many options. They can also prepare a personalized illustration of the structure and tax consequences of your gift, to discuss with your financial and/or legal advisor.
Bide Awhile understands that many donors consider estate and gift planning to be a strictly confidential matter. Out of respect for our donors, Bide Awhile has adopted a policy dedicated to preserving privacy and maintaining confidentiality in the planning process.
Legacy Gifts
Much of the support Bide Awhile receives to enable the care of animals comes from bequests through wills from supporters and friends. No bequest is to small to make a difference. Bequests are the easiest and most popular method of leaving a legacy to Bide Awhile and can be tailored to suit your needs.
Types of Bequests:
Specific bequest: a gift of a set amount of money or a specific asset, such as property or securities.
Residual bequest: a gift of all or a share of whatever is left in the estate after expenses and other legacy gifts have been distributed.
Contingent bequest: a gift to Bide Awhile only if a certain event occurs (eg. if the primary beneficiary does not survive the donor).
How would you like us to use your gift?
Unrestricted: your bequest can be given outright, without restrictions, for Bide Awhile's general use, in which case we apply the gift to the shelter's greatest needs, as considered appropriate.
Restricted: you may wish your gift to be used for a specific purpose, such as to support events, fund an awareness program, or to create a permanent (endowed) bursary fund in your or a loved one's name.
Tax Benefits
As a benefit to you, a charitable bequest to Bide Awhile may provide a significant tax advantage for your estate. Your executor can claim charitable bequests equal to 100 percent of the income on your final two tax returns. To make a bequest, please speak with your lawyer about drafting or revising your will. Our planning representatives would be pleased to offer confidential assistance and, should your gift be designated to a specific purpose, can provide you and your advisors with specific bequest wording according to your individual needs.
Gifts of Life Insurance
Giving life insurance is a way to make a substantial future gift to Bide Awhile without reducing the assets in your estate. The main advantage of using life insurance as a charitable gift is that the value of your gift will be substantially greater than the cost to you. There are several ways to make a gift to Bide Awhile using life insurance.
You can:
1. Give a paid-up insurance policy you already own and receive a tax receipt for its cash surrender value. As well, if premiums are still required, all future premiums paid by you will be eligible for a tax receipt; or,
2. Take out a new policy in Bide Awhile's name and receive a tax receipt for all the premiums you pay; or,
3. You can name Bide Awhile as the beneficiary (rather than the owner) of an insurance policy, Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) and your estate will receive a tax receipt for the amount of the proceeds to Bide Awhile.
Alternatively, if you wish to make a gift of cash or property now and watch it work, an insurance policy can replace those assets in your estate, and your current gift will earn tax credits that can spread over six years.
Charitable Remainder Trusts
A charitable remainder trust enables you to make a gift to Bide Awhile now with assets such as cash, securities, or real estate, and continue to receive income from those assets throughout your lifetime or for a specified number of years. The assets are placed in a trust which is managed by a trustee for the donor or the donor's named beneficiary for their lifetime. When the trust is terminated, that assets are delivered to the shelter.
There are two types of charitable remainder trusts:
irrevocable, where you receive a tax receipt now for the present value of the remainder interest; and
revocable, where your estate received the tax receipt when the assets are delivered to the shelter. Irrevocable trusts are not subject to probate. You may wish to consider funding a trust with highly appreciated property as the tax on the gain can be offset by the tax credit.
Gifts of Residual Interest
A gift of residual interest works in much the same way as a charitable remainder trust. If you have an asset, such as a residence or a piece of art that you wish to donate to Bide Awhile, but would like to continue to enjoy the use of during your lifetime, you can arrange the gift now and realize significant tax savings. You are not taxed on the gain of you donate a personal residence.
We recommend that you consult with your lawyer, estate planner, or accountant if you are considering establishing a trust or making a gift of residual interest.
Charitable Gift Annuities
The gift that gives back. A charitable gift annuity plan enables our more senior donors to make an immediate gift to Bide Awhile as well as receive guaranteed income for life that can be largely tax free depending on donor age.
Bide Awhile uses part of the gift to purchase a prescribed annuity that will pay a guaranteed amount agreed between the donor and the shelter. Bide Awhile will retain the balance of the contribution, after purchasing the annuity, for current use or to accumulate for an endowment, according to the donor's wishes.
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