Planned Giving

A bequest is a gift you leave in your will, and is either a specific amount or a portion of your estate. Bequests to charities are common and come from donors of all financial backgrounds. These are the most popular deferred gifts which can be altered at any point in your lifetime. 

Charitable bequests are also tax deductible: The estate receives a charitable tax receipt for the full value of the gift, the entirety of which can be used to offset tax liabilities realized in the year of death or even thereafter by the estate itself. 

Types of Bequests

• Specific or Particular Bequest*: A fixed amount or particular asset 
• Residual Bequest or Universal Legacy*: The remainder of your estate after other debts, liabilities and obligations are settled (which oftentimes is a percentage)
• Contingent Bequest or Contingent Legacy*: If primary beneficiaries predecease you, your estate will then go to LCC

* These terms are used primarily in Quebec

Suggested Wording for a Bequest

Example A:

I give and bequeath the sum of $ ____ (or ___% of the residue of my estate) to Lower Canada College at Montreal, Quebec, Canada for the general purposes of the school and its greatest needs, designated to ________ (identify program or project).

Example B:

I bequeath the sum of $____ (or ___% of the residue of my estate) to the Lower Canada College Foundation at Montreal, Quebec, Canada for ____ (insert bursary designation) in my name (or in memory of ________).

Retirement plan assets left to your heirs are often heavily taxed at the time of death. If LCC is named as the beneficiary to these assets, it will be subject to a full tax credit, thereby offsetting the income tax burden.

It’s worth noting:

• Making a planned gift of registered funds is straightforward: Simply designate a charity as the beneficiary of your RRSP or RRIF (outside Quebec) or designate your registered plan in your will (in Quebec). It can be modified at any time to suit your changing needs.
• Donating RRSPs or RRIFs as a planned gift can offset the tax burden on your estate and eliminates probate outside Quebec .
• If the income from the RRIF is not needed during one’s lifetime, it is possible to donate incoming payments and use that tax receipt to offset taxes payable.
• If LCC is named as the beneficiary it will be subject to a full tax credit.

A gift of securities may include, but is not limited to, stocks, bonds, and mutual funds. Listed securities can be donated during  your lifetime or through your will/estate. Over time, the value of your securities may increase. 

It’s worth noting:

• A gift of securities must be donated “in kind” to LCC to qualify for the beneficial treatment on the capital gains that would ordinarily be taxable.
• In general, the capital gains on any gifted securities will not be included in your taxable income.  
• Your estate may receive a donation tax credit based on the fair market value of the securities at the time they are transferred by your estate.
  • By donating appreciated securities after death, you can reduce, if not eliminate, any tax on the appreciated value and receive a tax receipt for the fair market value of the securities, thus offsetting the tax that would otherwise be associated with the gain (you would receive a receipt for the full value). 

You can optimize your philanthropic impact with the strategic use of life insurance. By assigning LCC as the owner or beneficiary of a new or existing policy, you make a gift that far exceeds the sum of your annual premiums, creating a significant and enduring contribution. You can even choose the amount of coverage and the timing of premium payments to align with your estate planning objectives. 

Making LCC a beneficiary while retaining ownership

• The donor’s estate receives a tax receipt for fair market value of the policy at death.
• No receipt is provided during the donor’s lifetime for premiums paid.
• The beneficiary designation can either be revocable or irrevocable.

Transfer ownership of a new or existing policy 

• The donor receives a tax receipt for the current cash value. 
• The donor receives a tax receipt for the ongoing yearly premium (and the estate does not receive a tax receipt at death), if applicable.
• LCC receives the full death benefit.
• LCC becomes owner and beneficiary.