Charitable Giving and Estate Planning

We all know that giving to worthy causes is a good thing to do and generates useful tax slips that help reduce our taxes.   Did you also know that planned giving can be a very useful planning move for your Estate and can even eliminate the taxes that will be due in the year you decease to the benefit of your favourite charitable organization?  This can even be accomplished with potentially minimal impact to the residue of assets available for your family or other beneficiaries.

All that is required is some careful planning and construction of your Will for your Estate and favourite charitable causes to be winners.  Donations can be made to the registered charity of your choice.  Here is one link to the Canadian Cancer Society with useful examples of how eliminating tax in the year of your decease can be done without necessarily incurring substantial costs to your other beneficiaries: http://www.cancer.ca/British%20Columbia-Yukon/How%20you%20can%20help/BC-Legacy%20Giving%20Gifts%20of%20Securities.aspx?sc_lang=en

If more donations are made in the year of death than are required the extra credits can be carried back to the prior year to potentially eliminate even more tax.

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Disclaimer

Information contained within this blog or on this website, either expressly or by reference, does not constitute professional advice and is designed strictly for general information purposes. As individual circumstances vary widely anyone seeking assistance with either their accounting or tax situation are strongly encouraged to seek appropriate professional advice.

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