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What exactly is Planned Giving?

What exactly is a planned gift?

A planned gift is a creative and flexible way to make a contribution that accounts for your unique needs, interests and financial situation. With careful planning, these gifts can reduce tax burdens and be made without affecting your current financial circumstances.

However, the greatest benefit of planned giving is in the satisfaction that comes when you are able to make a lasting difference in an area that holds personal significance and value.

Gifts that make a difference right away

There are many planned gifts where you immediately see the benefits of your contribution.

  • Cash
  • Paid-up life insurance policy
  • Gifts-in-kind and certified cultural property
  • Gifts of real estate
  • Interest-free loans
  • Reinsured gift annuities
  • Gifts of appreciated securities

If you intend to make a gift and have appreciated shares, you can receive greater benefit by donating the shares directly as opposed to selling them and making a cash gift.

Gifts that make a difference in days to come

Future gifts lay the groundwork for the success of the University in days to come. These gifts ensure continued opportunities for the next generation of students so they can reach their full potential.

Bequests: A bequest is a donation you make through your will. When you establish a bequest, you provide a meaningful gift that can result in a tax receipt for your estate. This receipt will reduce taxes owed by your estate and can result in greater benefits for other heirs.

Three common ways to leave a bequest gift are:

  • Specific bequest: you specify a certain amount, asset or item
  • Residual bequest: the U of L receives the remainder of your estate after addressing debts and provisions for other heirs
  • Percentage bequest: a defined portion of your estate is given to the U of L

Registered Retirement Savings Plan (RRSP) and Registered Retired Income Funds (RRIF):
If you do not have a spouse who will require the benefits of your registered plan, you can name the U of L as a beneficiary of either your RRSP or RRIF. The gift will pass to the U of L outside your estate, but the estate will receive a tax receipt, offsetting taxes owed and possibly leaving more for other heirs.

Life insurance: Pennies can be turned into dollars by making a gift of life insurance through various ways.

  • You can establish a new policy with the U of L as owner and beneficiary, and you receive a tax receipt for any premiums you pay.
  • You can transfer ownership of a policy that has premiums owing, and you will receive a tax receipt based on an appropriate valuation as well as for any future premium payments.
  • You can make the U of L the beneficiary (not owner) of a policy. Upon your passing, your estate will receive a tax receipt for the amount of the death benefit. Premiums in this case are not eligible for a tax receipt.

Gift of residual interest: You can make a gift of residual interest by transferring ownership of property to the U of L while retaining the right to use it while you are alive or for a specified period of time. The gift will pass to the U of L outside of your estate, and you will receive an immediate tax receipt for the future value of the property.

Charitable remainder trusts: By donating cash or property to establish a trust, you can receive income from that asset during your lifetime or for a period of time. The gift will pass to the U of L outside your estate, and depending on your circumstances, you may receive a tax receipt for the future value of the gift.