When planning your funeral pre-arrangements and drafting your will, there are a number of options available to you to ensure that your heirs benefit as much as possible from what you have to offer them.

Although it may seem counter-intuitive, including a planned gift to an organization in your will is an effective strategy for passing on the benefits to your heirs after your death.

In this article, we will discuss the advantages of a bequest as well as the details to consider when including planned giving in your will. In this way, you will be able to make an informed decision and, above all, ensure that your gesture will have the impact you want when you die.

 

What is a bequest?

A bequest is something given or left by a will, whereby a person decides to transfer certain assets or rights to a designated non-profit organization, after his or her death, under the terms of a will.

This type of bequest is often used to support a philanthropic cause close to the deceased's heart. It can be a gift of money, material goods, securities, real estate or even a life insurance premium.

A bequest is what we call a planned gift or planned giving. It is usually strategically planned by a person, during his or her lifetime, in order to support a cause, but also to optimize the financial return for his or her heirs.

 

Cut down on your income tax with a planned gift

One of the main advantages of a bequest is the possibility of benefiting from the donation tax credit. By naming specific beneficiaries in your will, such as charitable organizations, you can reduce the taxes payable on your registered assets, such as:

• Registered Retirement Savings Plans (RRSPs)
• Registered Retirement Income Funds (RRIFs)
• Rental property
• Second homes
• and more

The charitable tax credit also applies to the estate when assets are bequeathed at the time of death. A bequest therefore offers an additional opportunity to reduce the tax impact on your estate.

 

Bequests: a simple, flexible process

Worried about making a large gift? Rest assured: you will always be able to review your bequest during your lifetime. In fact, whether you want to change the recipient, the details of the gift or even cancel it, all you have to do is amend your will.

What's more, you can allocate a percentage of your estate to gifts rather than a cash amount. In this way, you avoid putting your estate at a disadvantage if the value of your assets varies over time.

For example, rather than specifying a fixed dollar amount, you can choose a percentage of the value of your registered plans, thereby ensuring that the gift remains proportional to your original wishes.

 

Making a planned gift to charitable organizations

Individuals wishing to support charitable causes can opt for planned giving. This approach involves planning long-term gifts to charitable organizations.

Planned giving options include strategies such as endowment funds, charitable trusts, charitable annuities and charitable donation of a life insurance policy These tools offer tax advantages, while enabling donors to support causes close to their hearts in a meaningful way.

 

Bequests and planned giving: important considerations

Before changing your last will and testament or including planned gifts in your will, it's a good idea to consult a professional for sound advice. This will ensure that you make the most of these resources for you, your heirs and the causes you would like to support.

It is also essential to contact the charities you want to support in order to discuss your intentions and verify their ability to accept your gift.

Similarly, we recommend that you take advantage of the services of our experienced advisors to plan your pre-arrangements easily.

 

Help with your pre-arrangements

A bequest is just one of the many things you need to think about now, so that after your death, you can support the causes and people you care about.

In fact, to ensure the well-being and peace of mind of your loved ones, funeral pre-arrangements are just as important as a will. That's why it's never too early to plan your pre-arrangements.

At Aeterna Complex, we're here to guide you in making pre-arrangements that truly respect your wishes and benefit those you leave behind.

Contact us to make an appointment.