28 contribute to your cause when and where you can. A charitable gift in your Will supplements your giving goals, it allows you to give so much more without taking away from your daily needs. • You can donate a larger amount: Donating $20,000 now might seem a bit out of this world, but what if we told you that even a small percentage of your Will could translate into a gift this size? If you don’t believe us, take a look at the Will Power Legacy cal- culator at willpower.ca • Your good work lives on: If you’ve been an advocate, volunteer or pillar in your community, a gift in your Will makes sure the good work continues. Not only that, your ongoing influence can rally your family, and motivate future generations to become advo- cates too! . • You’re making a savvy financial decision: After you pass, all your assets will be realized and counted as income, and your family will be left to deal with some pretty hefty taxes owed by your estate. This is where that donation will come in handy. It will trigger a charitable tax credit that could significantly decrease, and sometimes even eliminate, the taxes altogether. The biggest myth about donating to charity in a Will I’m sure it comes as no surprise - the biggest reason why Canadians don’t leave a charitable donation in their Will is because they plan on leaving every- thing to their family and loved ones. Believing that a donation takes away from your family’s inheritance is a BIG misconception. Let’s have some fun for a moment. Imagine taking your Lotto Max ticket to the convenience store and you hear the jingle. You’ve won! Not only that, you’ve won big: 1 million dollars. Suddenly you’re thinking about all the boxes you’d check off: Get that boat you’ve always dreamed of. Finally take your kids to Italy. Help your family members the way you want to. Donate to that cause you’ve always loved. Just imagining the ways you could make a difference around you fills you with joy. Alright, let’s come back to earth again. Guess what? You don’t need to win the lottery to experience the joy of helping others in big ways. And though we can’t help you make it to Italy, we’re here to tell you that it’s actually possible to help your family and the charities you care about. According to StatsCan, the average Canadian household net worth is around $980,000, which isn’t too far from 1 million. Of course, this is made up of assets like your house, RRSP, insurance policies and investments. When you think about it, that’s a large sum that can make a huge difference. For many Canadians of average means, choosing to leave a small percentage of their estate to charity translates to any- where from $20-35K. This is the power of leaving a donation in your Will to a charity How charitable donations in a Will can reduce taxes. How does the Canadian government encourage us to donate to charities? By offering us some of the best tax incen- tives in the world. Here’s the truth: that last tax bill is likely to be your biggest one of all. After everything is turned into income – your real estate, invest- ments, leftover RRSPs, etc. – your estate will have a lot to declare on its final tax form. But if you plan ahead there are some clever ways to avoid the Canada Revenue Agency and make sure your money goes to the people and causes that mean more to you. . Here are three tricks you may not know about: 1. Donate securities in-kind: If you have publicly traded securities that have appreciated in value, you can donate them to a registered charity and get a double tax benefit. You eliminate both the capital gains on your securities plus get a tax credit for your estate. Note: Just make sure the stocks are transferred to the charity for them to sell, otherwise the double tax credit won’t apply! 2. Name a charity as a beneficiary on a life insurance policy: Whether you took out a policy yourself, or were given one through work, adding a charity as one of your beneficiaries will allow you to multiply your dona- tion (and get a bigger tax credit). 3. Naming a charity as a beneficiary of your leftover RRSPs/RRIFs: If you have any money left over in your RRSP or RRIF when you die, it will be heavily taxed. But if you name a charity as a beneficiary you can near- ly eliminate the taxes that would have to be paid. It’s also the most quick, easy, and flexible way to leave a legacy gift. Note: If you live in Quebec, you can only name a charity as a beneficiary of your RRSP through your Will. Please remember, everyone’s financial situation is different. If you’d like to know what works best for you, speak to a financial advisor who knows about estate and charitable planning. We’ve compiled a list of financial advisors (many who offer free consultations) at willpower.ca
