The following are examples of options for providing a legacy gift to the Alzheimer Society. This information can help facilitate discussion between you and your estate planning advisor. It is not intended as legal or tax advice. We encourage you to seek advice from a qualified professional.
Bequests are gifts made to the Alzheimer Society of Manitoba through a legal will and are the most common type of planned gift. You can maintain full control of your assets during your lifetime and, through your estate, make a gift that may not have been possible during your lifetime. Your estate will generate tax credits that may offset any taxes payable. This can significantly reduce the taxes owing on your final tax return and be of benefit to your beneficiaries.
The gift of a bequest to the Alzheimer Society can be in the form of:
- A specific sum of money
- A particular asset
- A percentage of whatever remains after expenses and after other beneficiaries are taken care of
Your bequest can also be a contingent bequest, payable to the Alzheimer Society only if your other beneficiaries do not survive you.
Gift of Life Insurance
You can make a significant contribution to the Alzheimer Society of Manitoba and realize an immediate tax benefit now or in the future.
There are a couple of ways a gift of life insurance can be made:
- Designate the Alzheimer Society of Manitoba as a beneficiary on a policy you own. The Society will receive a future gift and your estate will receive a tax benefit.
- Transfer ownership of a new or existing policy to the Alzheimer Society of Manitoba. The Society will receive a future payout from the policy and you will receive tax benefits during your lifetime.
Gift of Annuities
Depending on your age, a charitable gift annuity allows you to make a significant gift to the Alzheimer Society, receive a tax credit and receive enough income to live comfortably.
Annuities can be appealing for people aged 70 and over because:
- They offer a rate of return higher and GICs and term deposits without increased investment risk and without the need to make ongoing investment decisions.
- The donor can receive a predetermined monthly amount for life without having to manage their investment.
Charitable Remainder Trusts & Gifts of Residual Interest
Charitable remainder trusts and gifts of residual interest allow donors to receive an immediate tax benefit and enjoy their assets or property during their lifetime. Since the ownership is actually transferred in the form of a trust to the charity, the assets fall outside of the estate of the donor and are not subject to probate fees.
Gifts of charitable remainder trusts and gifts of residual interest may be appealing to mature donors if:
- They would like to continue receiving income from their assets and want to continue enjoying their property
- They want to reduce the amount of income tax they pay
Gifts of RRSPs & RRIFs
Many Canadians have savings in Registered Retirement Savings Plans (RRSP), but RRSPs and RRIFs (Registered Retirement Income Fund) often create large tax liabilities in the year of death since the entire amount of the plan is included in your income in one year. Arranging for a donation of all or a percentage of your RRSP or RRIF to the Alzheimer Society of Manitoba upon your death is an effective way to reduce the taxes payable by your estate.
An endowment is a permanent fund from which investment income can be used for a designated purpose. This can ensure that there is a stable source of funding for essential support services or research. When you create an endowment, the principal amount of your gift is invested and only the income can be used for our vital programs. This type of gift continues to give year after year. Various tax benefits apply, depending on the way the donation is made.