Just as you have supported Parkinson Society British Columbia throughout your lifetime, you can include a provision in your estate planning.
By considering a gift to Parkinson Society British Columbia (PSBC), you are thoughtfully providing for those who will be living with Parkinson's disease in the future. Making a planned gift through your estate or a current planned gift, such as securities, highlights your commitment to individuals with Parkinson's disease, their caregivers and families.
Bequests: You may choose to leave a gift in your Will or trust
What is a Will? A Will is an important legal document which directs how your property is disposed after death. Everyone should have a valid, current Will. By naming Parkinson Society British Columbia in your Will (often called a bequest) you can designate a specific sum of money or designate a portion of your entire estate after providing for loved ones. Alternately, you may create a contingent bequest, payable to Parkinson Society British Columbia only if a spouse and/or children do not survive you.
To create a bequest:
- Sample wording for a Specific Cash Bequest: "I give, devise and bequeath the sum of ($amount) to Parkinson Society British Columbia in the City of Vancouver, British Columbia to be used for such of the objects and purposes as the Board of Directors shall from time to time determine."
- Sample wording for a Residual Bequest: "I give the residue of my estate (or percentage of the residue of my estate) to Parkinson Society British Columbia in the City of Vancouver, British Columbia to be used for such of the objects and purposes as the Board of Directors shall from time to time determine."
- Sample wording for a Contingent Bequest: "If neither (name of primary beneficiary) nor (name of alternate beneficiary) survives me for 30 days, then I give (describe amount of cash, property, percentage of residue or other gift) to Parkinson Society British Columbia in the City of Vancouver, British Columbia to be used for such of the objects and purposes as the Board of Directors shall from time to time determine."
Beneficiary Designation: You may name PSBC as the beneficiary of your life insurance policy, RRSP or RRIF
What are gifts of life insurance? These types of gifts may provide you with an opportunity to support Parkinson Society British Columbia and also reduce your tax bill. You have two options for supporting the Society with a gift of life insurance:
- Name PSBC as the owner and beneficiary of an insurance policy. By designating PSBC as the beneficiary and owner of a life insurance policy, you may provide a substantial donation for a relatively small premium payment. You will receive an immediate tax credit for the amount of the premiums and the cash value of the policy, when one exists. Parkinson Society British Columbia retains the policy for the life of the insured (you or another designated person) and receives the proceeds upon death. This gift entitles you to a tax receipt from PSBC for all premiums paid after setting up or assigning the policy, and for the cash value of the policy (if one exists). However you, or your estate, receive no further tax benefit when PSBC ultimately receives the benefit.
To create a beneficiary designation, you can name Parkinson Society British Columbia as the owner and beneficiary of an insurance policy on a new policy application form, or for an existing policy, by filling out an Assignment form and Beneficiary Change form which you can obtain from your insurance company.
- Name PSBC as a beneficiary of a new or existing life insurance policy. You may name Parkinson Society British Columbia either as a primary beneficiary of all or part of the proceeds, or as a contingent beneficiary in the event that your primary beneficiaries predecease you. While PSBC benefits from the possibility of an eventual gift, this option offers no immediate tax benefits since the Society does not own the policy. If PSBC becomes the ultimate beneficiary of the policy, your estate receives a charitable receipt. Death benefit proceeds will be paid directly to the charity, thus avoiding the claims of creditors, other beneficiaries and probate fees.
To create this designation, complete the Beneficiary Change form with your insurance company.
What are gifts of registered plans?
These types of gifts ensure that PSBC will receive the gift without having to pass these assets through an estate. A registered retirement plan is a tax deferred savings plan, such as a Registered Retirement Savings Plan (RRSP) or Registered Retirement Investment Fund (RRIF). You will receive a tax benefit when you invest money in the plan and any interest that is earned is tax free.
Often the money that has accumulated in an RRSP or RRIF remains untouched and only the minimum amount is withdrawn each year in retirement. Upon your death, your estate can be subject to a large tax bill from the untouched income and interest remaining in the RRSP or RRIF. Only when you cash the RRSP or RRIF, usually during retirement when your income is reduced, are your investment and any accumulated interest treated as income and subject to tax.
By gifting the total proceeds of the registered plan to Parkinson Society British Columbia, a charitable contributions receipt is issued and is available to be applied against 100% of the net income on your final tax return. If the receipt exceeds the taxable income of your estate, the balance can be applied against up to 100% of your taxable income of the year preceding your death. With this option, at the time of your death, the proceeds of the plan are donated to the Society. The executor of your estate will include the full balance of the registered plan in your final tax return. Then your executor will receive a charitable contributions receipt from Parkinson Society British Columbia for the same amount.
To create this type of gift, you must designate Parkinson Society British Columbia as the beneficiary of the registered plan's assets. You can do this with an officer of the financial institution that is administering the plan.
Charitable Remainder Trusts and Annuities: you may make a future gift and receive lifetime income for you and your spouse.
What are charitable remainder trusts and charitable gift annuities?
Charitable remainder trusts provide flexibility when planning your estate, and a means of directing your assets and future gifts to Parkinson Society British Columbia. These charitable remainder trusts may be funded with cash, securities or real estate. Assets are placed with a trustee and you receive the income generated by the assets in trust, according to the terms set out at the time the trust is established. The capital remains intact, however, and PSBC receives the amount placed in trust after your death. It is also possible to establish a trust that provides income to your surviving spouse. In this instance, the property would pass to PSBC only after both spouses have died.
Because charitable remainder trusts are irrevocable gifts, the donor is usually entitled to a donation receipt when the trust is created. The receipt amount is based on the present value of the remainder interest (usually 20-60% of the value of the property if real estate), determined by the fair market value of the assets, interest rates, the donor's age, and the specifics or duration of the trust.
A charitable gift annuity offers you the ability to make a significant gift while enjoying income for life that is largely tax exempt. The benefit to you is a safe, secure stream of income that his largely tax-exempt. In addition, you will receive a charitable tax receipt for the charitable portion which may be applied for tax relief for up to five years. Note that this gift is best suited for individuals who are 65 years of age or older.
Gifts of a future interest in real estate
What are gifts of real estate? You may give a gift of real estate outright (today) or upon death. When you consider donating a final gift of your residence, vacation home or other real estate parcel to Parkinson Society British Columbia, you may continue to use and occupy the donated property for the duration of your life, or the life of someone you designate. During your lifetime(s), you will be treated as the owner(s) of the property but you will qualify for an immediate tax deduction.
Marketable Securities: You may donate appreciated securities now or in the future
What are gifts of securities?
Publicly listed securities are all securities listed on Canadian and major international exchanges. Your donation must be donated directly to the charity (like an "in-kind" gift) to qualify; usually they are transferred by your broker Parkinson Society British Columbia, not the cash proceeds from the sale.
This giving option is now even more attractive for donors who have appreciated stock and want to make a donation from savings rather than current cash. In May 2006 the Federal Government introduced the complete elimination of tax payable on gifts of public securities. This gift will provide two kinds of tax advantages:
- A tax credit (41% to 48% depending in which province you reside), and
- No capital gains paid on the disposition of the stock.
For donors still holding "demutualized" shares, a budget measure presents a unique opportunity as these shares have a zero cost base. ("Demutualization" was part of the process some insurance companies undertook to convert ownership by policyholders to ownership by shareholders. Policyholders were offered shares, cash or a combination of both.)
To give a gift of shares, you have a choice of giving shares electronically or in paper form if you still hold those types of shares. Contact your own stockbroker and tell him or her that you wish to make a gift of certain securities (the name and number) to Parkinson Society British Columbia. Then notify Stephanie Devine or Trang Pham, RBC Dominion Securities by phone at 604 257 3210 that you will be making this gift and the type and number of shares.
Please also notify PSBC (Rav Kambo at 604 662 3240 or email@example.com). Notification must be received in writing, via email, with a clear indication in the subject line of a stock gift and from which donor.
Transfer of Securities
We ask that you notify Parkinson Society British Columbia when there is an impending transfer of securities (Rav Kambo at 604 662 3240 or firstname.lastname@example.org).
You may gift the securities through an electronic transfer (the most common) or by delivering paper certificates. You should determine the exact date of transfer of ownership, since this determines the value of the shares. Or you may leave that to your broker. Note that the tax receiptable amount of this gift will be based on the average of the high/low value of the shares on the day they are received.
- If stock is transferred electronically: Your broker will handle the electronic transfer. The accompanying documentation (Letter of Direction) must also be part of the gifting process. The day they are received by RBC Dominion Securities is the date of receipt.
- If the stock is transferred in paper shares: You must provide the paper shares and all documentation (Letter of Transmittal, Letter of Direction, Power of Attorney to Transfer Securities and Letter of Authorization). If they are delivered to the PSBC office, they will be received and date-stamped; this will determine the date of receipt. Or deliver to Stephanie Devine at RBC Dominion Securities, 666 Burrard Street, Suite 2500, Vancouver, BC.
- You should note in the Letter of Direction that you wish the funds to be deposited into the General Fund (unrestricted or restricted to research) or to the Endowment fund (to be held and disbursed further into the future). Notify RBC Dominion Securities to deposit all funds received from the sale of the securities to the PSBC Account: 803 08710 19 | CUID: DOMA | DTC: 5002 | EUROCLEAR: 90065.
- Once this information is confirmed from TD Waterhouse in writing, a charitable tax receipt will be issued to you.
- Letter of Direction to Parkinson Society British Columbia (a letter from you to send to PSBC saying how the gift will be given)
- Fax of Instruction to your broker (to direct the sale of securities to PSBC)
- Letter of Transmittal for paper shares (to accompany paper shares in case they are lost)
- Power of Attorney to Transfer Securities (POA) Form for paper shares (this is a critical step for TD, since it helps to reduce fraudulent transactions from occurring)
- Letter of Authorization Form for paper shares (to accompany the POA form, which the donor must complete in the presence of an employee of a Chartered Bank or Financial Institution)