Other Ways to Plan Your Giving
Along with leaving a gift in your will, contributing a gift of securities or gifting life insurance premiums, there are several ways to plan your giving to the Cape Breton Regional Hospital Foundation.
These include gifting via registered plans (RRSP or RRIF), endowments, and charitable remainder trusts.
The Cape Breton Regional Hospital Foundation can be named the beneficiary of an RRSP or RRIF. This type of planned gift can significantly reduce the amount of tax payable on your estate at the time of your death, while contributing to a worthy cause in your community and leaving a legacy.
Currently, tax rules state in the year of death, donations made up to 100 percent of the taxable income are deductible on the final tax return, with an unused portion allowed to be carried back to the previous year.
At the time of death, unless there is a surviving and designated beneficiary to receive the RRSP or RRIF, all money invested in an RRSP or RRIF must be declared as income. This means a large percentage of your estate would be paid out in taxes. By designating some, or all, of your RRSP or RRIF to the Cape Breton Regional Hospital Foundation, your estate will receive a charitable tax receipt helping to offset the amount of tax to be paid.
The proceeds from the RRSP or the RRIF will be paid directly to the Cape Breton Regional Hospital Foundation without going through probate, thus saving on probate fees.
An endowment fund is like a charitable investment fund, where a donation is permanently invested, and the income earned each year is used to support the Cape Breton Regional Hospital Foundation.
Endowments can be created with a minimum donation of $25,000, by either a one-time donation or a pledged donation over time. All new endowments must be approved by the Foundation’s Investment Committee.
As part of your legacy, a named endowment is a deeply personal statement of who you are (or the impact a loved one has had on your life), and what you believe should be supported long into the future.
A charitable remainder trust is a unique way to make a significant gift to the Cape Breton Regional Hospital Foundation, receive immediate tax benefits and maintain your level of income. With a charitable remainder trust, you transfer your assets to a trust making an irrevocable gift of the entire capital or remainder interest to the Cape Breton Regional Hospital Foundation.
For a donor there are a number of benefits for using planning a gift via charitable trusts.
- You will maintain, or in some instances, increase your level of annual income.
- You will receive a tax receipt for the net present-day value of the remainder trust that has immediate tax benefits.
- You will be recognized by the Cape Breton Regional Hospital Foundation for your gift based on the full value of the trust when the trust is established.
The two most common types of trusts are a Charitable Trust Remainder and Gifts of Residual Interest.
Charitable Trust Remainder
To qualify as a charitable remainder trust, the following conditions must be met:
- The transfer of assets to the charitable remainder trust must be irrevocable.
- The property must reside with the Cape Breton Regional Hospital Foundation at the time of the transfer.
- The value of the residual interest given to the Foundation must be ascertainable.
- The principle of the interest cannot be encroached upon; therefore, any administrative fees associated with the management of the trust must be deducted from the income paid.
Gifts of Residual Interest
Gifts of residual interest refer to an arrangement under which property, such as a home or artwork, is irrevocably deeded to the Cape Breton Regional Hospital Foundation.
This type of gift may appeal to you if you are over the age of 65; wish to gift through a will bequest but receive the tax advantages immediately; and/or do not want to change your standard of living, but wish to make a substantial gift now.
To learn more about planned giving to the Cape Breton Regional Hospital Foundation, please contact Caitlyn MacDonald at 902-563-8585 or [email protected].
Please note: As with any planned gift, the Cape Breton Regional Hospital Foundation strongly advises that you speak with your legal advisor and/or financial planner to ensure your needs and the needs of your family are met.