| Bequests or Planned Giving |
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Information is key to understanding Planned Giving.
Making a gift is easy Most Planned Gifts are bequests in a will and are created by adding a codicil to an existing will or including a gift in the preparation of a new will. Often lawyers will include the codicil in a will without any charge. This is especially true if specific wording is provided. [Include link to standard codicils with explanation and printable version]. Other forms of gifts include: Gift of Life Insurance, Gifts of Securities, Charitable Remainder Trusts, etc… Bequests enable individuals to make significant gifts that they may not have been able to make while living - gifts that continue to make a difference for many years. Your bequest to the Foundation in support of Guelph General Hospital may be directed for general use by the Hospital, or for a special purpose that you may designate [make link explaining designated bequests]. A bequest can be a specific amount of money; a specific asset it can be a percentage of the residue -- the remainder of your estate to be distributed after specific bequests. If making a gift, please include the proper name of the beneficiary of such gifts, which is “The Foundation of Guelph General Hospital.” Making a Gift is Easy [click here for codicil wording] Remember, when making a bequest, speak to your lawyer about drafting or revising your will. It is always best to include your trusted advisors and family when make changes to your estate plan. Plan your Will today! [Click here for your Will Planner] Life Insurance [Click for More Info] There are a number of ways to support Guelph General Hospital with a gift of life insurance. Gift of an existing policy – you can transfer an existing policy by naming the Foundation the owner and beneficiary. If the policy is paid up, you or the Foundation need pay no additional premiums. The tax receipt is issued for the cash surrender value of the policy plus any accumulated dividends and interest at the time of the transfer. If you continue to fund future premiums, these amounts will also be eligible for the donation credit. Gift of a new policy – some donors choose to take out a new policy with the Foundation as owner and beneficiary. It is important that the Foundation is both the owner and the beneficiary. If the charity is not made the owner, Canada Revenue Agency (formerly Revenue Canada) states that no gift will have been made, and no tax receipt can be issued. Under this type of arrangement, each year you pay the premiums, and the Foundation issues an annual tax receipt for these premiums. The insurance proceeds will be paid directly to the Foundation upon your demise. In addition, there are creative options for using life insurance proceeds as wealth replacement vehicles, replacing the value of a current gift in your estate so there is no impact on heirs. It is always best to include your trusted advisors and family when make changes to your estate plan. Stocks and Bonds [Click for More Info] Donating publicly traded securities, such as stocks, bonds and mutual fund units, is the least expensive way to make a gift. This is because there is favourable tax treatment related to the taxable portion of a capital gain. You’ll receive a charitable tax receipt for the full value of your donation – and pay tax on just half of the normal capital gains inclusion rate – 25% rather than 50%. Securities are equally tax-effective when given today or in the future through a bequest. It is always best to include your trusted advisors and family when make changes to your estate plan. Charitable Remainder Trusts (CRT) A Charitable Remainder Trust is a gift whereby a donor makes a gift to Guelph General Hospital through a trust arrangement. The donor normally benefits from the Trust arrangement immediately with hospital being the eventual beneficiary of the trust itself. To establish a CRT, the donor will transfer some form of property to the Hospital Foundation with the knowledge that it will be held until the term of the trust expires. The term is normally to the donor’s death. The trust can be set up in life or through the donor’s estate. At the time the trust expires, the proceeds of the trust will go to the Hospital. If the property is income producing, this income will be paid out to the donor or some designated beneficiary until the trust terminates. If the trust is irrevocable, the donor is entitled to an immediate tax receipt for the present value of the residual interest. Please call at 519-837-6422 or email us at foundation@gghorg.ca to see how this trust arrangement can be used as an alternative to a bequest gifts.
The Heritage Society - Recognizing your contribution With your permission, The Foundation of Guelph General Hospital will permanently recognize your generosity on a special section of our donor recognition wall known as the Heritage Society. This is a special section dedicated to honouring those you have made Planned Gifts to the Hospital. We will also display your name on a special section of our website and through a listing in our newsletters, Giving News and Heritage Report. Your planned gift will also be acknowledged through an invitation to join our Heritage Society; a group of supporters characterized by their long-term vision and desire to support the future of Guelph General Hospital. All requests for anonymity will, of course, be honoured.
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