DEFINING YOUR LEGACY: CRAFTING CHARITABLE GIFTS IN YOUR WILL
As an estate planning lawyer, I advise individuals and families on how to transfer wealth between generations. Part of this process includes asking clients to consider their philanthropic objectives and developing personalized plans to carry those out.
Including a charitable gift in your will is a simple way to leave a lasting legacy when you are gone, and can positively impact your community and future generations.
Whether you wish to establish an endowment fund at your former alma mater to provide scholarships to students pursuing a particular field of study, make a gift to your local hospital where a family member received care, donate to a local community foundation that supports grassroots initiatives and programs in your neighbourhood, or leave a cash gift to an organization that you volunteered at during your lifetime, these gifts can take many forms, and be personalized to reflect each will-maker’s unique values and wishes.
You do not have to have a lot of wealth to make a charitable gift in your will. Even a small gift can have great impact.
In addition to the benefit that will be enjoyed by the charity, charitable gifts in your will can also benefit your estate. Properly planned charitable gifts can be used to provide donation tax credits to your estate, which can help to offset some of the tax liability that arises on death.
Once you have identified your charitable goals, consult an experienced adviser to ensure the gift is structured properly and your wishes will be carried out. Common issues that arise from improperly planned gifts in a will include failing to identify the appropriate organization or branch of the organization (e.g., BC Cancer Agency versus BC Cancer Foundation), imposing undue restrictions on the charity’s use of the gift that may prevent the gift from taking effect, and failing to use the charity’s correct legal name. For example, there are over 400 registered charities in Canada whose names contain the term “Salvation Army” – failing to properly identify which branch of The Salvation Army you intend to benefit can create ambiguity, and could result in litigation.
An experienced adviser can assist you in developing and carrying out your charitable goals. No matter how big or small, a planned charitable gift can make a lasting impact and help you to define the legacy you leave behind.