DONATE SECURITIES, INSURANCE POLICIES, AND OTHER OPTIONS

Designating a charity as the beneficiary of an existing or new life insurance policy is an effective way to create a lasting legacy of caring that will live on to support future generations. It is also possible to make a gift by transferring ownership of a new or existing policy to a charity.

Other benefits of making a gift of life insurance:

• Create tax benefits either now or for your estate (depending on how your gift is arranged), and;
• Fund a significant legacy gift by investing a small to moderate amount of personal assets.

What To Do Next

In order to make a gift of life insurance, contact your insurance agent or financial planner and TB Vets Foundation. Working together, we will arrange a gift of insurance that best suits your estate planning priorities. You may already own a life insurance policy which would make a suitable gift or you may wish to purchase a new policy. Purchase of a new policy may require health screening to determine your “insurability.”

To make a beneficiary designation on a life insurance policy, it is important that you include the full legal name of the charity.

Our Legal Name: TB VETS CHARITABLE FOUNDATION
Our Charitable Registration Number: 87416 1482 RR0001

Options To Consider

You may designate TB Vets as the beneficiary of an existing life insurance policy. When we receive payment from the insurance company, on the policy, we will issue a charitable tax receipt to your estate.

Alternatively, you may transfer ownership of an existing or new policy to TB Vets, provided the policy is a whole life or universal life policy, and provided that TB Vets has agreed to accept the policy as a gift. Once the policy is transferred, we will issue a charitable tax receipt to you, each year, following your payment of the annual insurance premium. (We may also be able to issue a charitable tax receipt for the cash surrender value of an existing policy at the time it is transferred to us.) Under this scenario, a tax receipt would not be issued to your estate following death.

Of note:

• TB Vets does not sell life insurance policies nor do we accept all policies offered to us as gifts.
• Please speak with your life insurance agent or financial planner to ensure you understand how your intended gift of a life insurance policy will impact your estate and your current tax status.

Thank you for considering a future gift for TB Vets!

Charitable remainder trusts offer you a guaranteed lifetime income and substantial, immediate tax savings – while supporting TB Vets.

How To Set Up a Trust

You can create a charitable remainder trust by irrevocably transferring assets (usually cash) to a trust and then naming TB Vets as the recipient of these assets upon your passing.

You or another beneficiary will receive the income earned by the trust on these assets during your lifetime or the other beneficiary’s lifetime. After that time, the capital goes to TB Vets. Since the capital of the trust (the original amount you contributed) is not accessible, you are also entitled to an immediate tax receipt for the present value.

Benefits of Setting Up a Trust

• You are entitled to a donation receipt that can be used to reduce your taxes
• You retain the income generated by the property
• You are free from investment decisions
• Probate and other estate costs can be avoided
• As the assets pass outside of the estate, they are not normally subject to challenge

Thank you for considering a future gift for TB Vets!

Many Canadians are surprised to learn that the assets held in a Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) become fully taxable income to a person’s estate in his or her year of death. The income inclusion often creates a large tax bill. If the estate can “rollover” the account balance to a spouse, a dependent, or disabled child, the large tax bill may be postponed. Alternatively, leaving the RRSP or RRIF to a charity will produce a charitable receipt which will offset the tax burden on the donor’s estate. All things being equal, in a choice between leaving a $100,000 unregistered term deposit or a $100,000 RRIF to a charity, your estate beneficiaries will be better off if you leave the RRIF to the charity. Speak with your accountant or financial planner to learn specific details of how your assets will be taxed at death.

Benefits of Making a Gift of RRSPs or RRIFs

If you name TB Vets Charitable Foundation (our legal name) as the direct beneficiary of a RRSP or RRIF, your estate is entitled to a donation receipt for the amount paid out on death. As this asset usually passes directly to the Foundation, probate taxes can be avoided and the risk of creditor claims can be minimized.

Options:

• You may designate 100% of your registered account to a charity, such as TB Vets.
• You may divide your registered retirement account amongst several charities by leaving a specific percentage to each named charity (ensuring that all percentages added together total 100%.)
• You may divide your registered retirement account amongst charities and individuals – friends or family members – by leaving a specific percentage to each. (Again, ensuring that all percentages added together total 100%.)

What To Do Next

In order to make a charitable gift through a beneficiary designation for your RRSP or your RRIF, you will need to contact your plan holder – the institution holding your registered retirement account: your bank, investment firm, trust company or insurance company. The plan holder will provide you with the correct beneficiary designation form for your account. (In a few cases, you may be asked to revise your Will in order to make a beneficiary designation.) To make a beneficiary designation it is important that you include the full legal name of the charity.

Our Legal Name: TB VETS CHARITABLE FOUNDATION
Our Charitable Registration Number: 87416 1482 RR0001

While we are not able to provide individual legal or accounting advice to individuals who are contemplating a charitable gift of RRSPs or RRIFs, we welcome an opportunity to discuss your intentions for your future gift and to provide additional information about TB Vets.